Financial Statement Analysis of BestCare Health Maintenance Organization Financi

EXHIBIT 4.1 Sunnyvale Clinic Balance Sheet.docx

A balance sheet truly illustratesthe health and wellbeing of any company. Consider what you have learned thisweek and apply it to this assignment.

Tasks:

Review the following balance sheet:

BestCareHealth Maintenance Organization (HMO)

BalanceSheet

June30, 2011 (in thousands)

Assets

Current assets:

Cash

$2,737

Net premiums receivable

$821

Supplies

$387

Total current assets

$3,945

$3,945

Net property and equipment

$5,924

Total assets

$9,869

Liabilities and Net Assets

Accounts payable—medical

$2,145

services

Accrued expenses

$929

Notes payable

$382

Total current liabilities

$3,456

$3,456

Long-term debt

$4,295

Total liabilities

$7,751

$7,751

Total assets

$9,869

Net assets-unrestricted (equity)

$2,118

Total liabilities and net assets

$9,869

Answer the following questions afteryour analysis:

  • What is BestCare’s net working capital for 2011?
  • What is BestCare’s debt ratio? How does this ratiocompare with Sunnyvale’s debt ratio as shown in Exhibit 4.1 (Chapter 4) inyour textbook? (See attachment)

Submission Details:

  • Present your analysis as a 2-page report in a MicrosoftWord document formatted in APA style.
  • On a separate page, cite all sources using APA format.

Assignment 2 Grading Criteria

MaximumPoints

Provided an accurate analysis ofBestCare’s net working capital for 2011.

16

Provided an accurate debt ratiofor BestCare.

16

Correctly analyzed the comparisonof BestCare’s debt ratio to Sunnyvale’s debt ratio.

10

Wrote in a clear, concise, andorganized manner; demonstrated ethical scholarship in accurate representationand APA style attribution of sources; displayed accurate spelling, grammar,and punctuation.

8

Total:

50

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