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Assignment 2: Dropbox Assignment
Financial Statement Analysis of BestCare Health Maintenance Organization Financials
A balance sheet truly illustrates the health and well-being of any company. Consider what you have learned this week and apply it to this assignment.
Tasks:
Review the following balance sheet:
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BestCare Health Maintenance Organization (HMO)
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Balance Sheet
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June 30, 2011 (in thousands)
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Assets
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Current assets:
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Cash
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$2,737
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Net premiums receivable
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$821
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Supplies
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$387
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Total current assets
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$3,945
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$3,945
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Net property and equipment
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$5,924
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Total assets
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$9,869
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Liabilities and Net Assets
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Accounts payable—medical
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$2,145
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services
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Accrued expenses
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$929
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Notes payable
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$382
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Total current liabilities
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$3,456
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$3,456
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Long-term debt
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$4,295
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Total liabilities
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$7,751
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$7,751
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Total assets
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$9,869
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Net assets-unrestricted (equity)
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$2,118
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Total liabilities and net assets
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$9,869
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Answer the following questions after your analysis:
- What is BestCare’s net working capital for 2011?
- What is Best Care’s debt ratio? How does this ratio compare with Sunnyvale’s debt ratio as shown in Exhibit 4.1 (pg. 122) in your textbook.
Submission Details:
- Present your analysis as a 2-page report in a Microsoft Word document formatted in APA style.
- On a separate page, cite all sources using APA format.
- Name your document SU_MHC6305_W2_A2_LastName_FirstInitial.doc.
- By Saturday, October 22, 2016, submit your assignment to the W2 Assignment 2 Dropbox.
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Assignment 2 Grading Criteria
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Maximum Points
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Provided an accurate analysis of BestCare’s net working capital for 2011.
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16
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Provided an accurate debt ratio for BestCare.
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16
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Correctly analyzed the comparison of BestCare’s debt ratio to Sunnyvale’s debt ratio.
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10
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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.
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8
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Total:
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50
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