Financial Statement Analysis of BestCare Health Maintenance Organization Financial, business and finance homework help
Assignment 2: Dropbox Assignment
Financial Statement Analysis of BestCare Health Maintenance Organization Financials
A balance sheet truly illustrates the health and wellbeing of any company. Consider what you have learned this week and apply it to this assignment.
Tasks:
Review the following balance sheet:
| BestCare Health Maintenance Organization (HMO) | ||
| Balance Sheet | ||
| June 30, 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 after your analysis:
- What is BestCare’s net working capital for 2011?
- What is BestCare’s debt ratio? How does this ratio compare with Sunnyvale’s debt ratio as shown in Exhibit 4.1 (Chapter 4) in your textbook?
Submission Details:
- Present your analysis as a 3-page report in a Microsoft Word document formatted in APA style.
- On a separate page, cite all sources using APA format.
| Assignment 2 Grading Criteria |
Maximum Points |
| Provided an accurate analysis of BestCare’s net working capital for 2011. |
16 |
| Provided an accurate debt ratio for BestCare. |
16 |
| Correctly analyzed the comparison of BestCare’s debt ratio to Sunnyvale’s debt ratio. |
10 |
| Wrote in a clear, concise, and organized manner; demonstrated ethical scholarship in accurate representation and APA style attribution of sources; displayed accurate spelling, grammar, and punctuation. |
8 |
| Total: |
50 |
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