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Consider the following balance sheet:
BestCare 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
Net property and equipment            $5,924
Total assets                                       $9,869
Liabilities and Net Assets
Accounts payableAc€??medical
Services                                  $2,145
Accrued expenses                              929
Notes payable                                    382
           Total current liabilities           $3,456
Long-term debt                                  $4,295
Total liabilities                       $7,751
Net assetsAc€??unrestricted
(equity)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â $2,118
Total liabilities and net
Assets                                    $9,869
a.        How does this balance sheet differ from the one presented in Exhibit 4.1 for Sunnyvale?
b.        What is BestCareAc€?cs net working capital for 2011?
c.        What is BestCareAc€?cs debt ratio? How does it compare with SunnyvaleAc€?cs debt ratio?
Exhibit 4.1
Â
| Assets | Â | Â | 2011 | 2010 |
| Current Assets | Â | Â | Â | Â |
| Â | Cash and cash equivalents | Â | $12,102.00 | $6,486.00 |
| Â | Short term investments | Â | $10,000.00 | $5,000.00 |
| Â | net patient accounts receivable | Â | $28,509.00 | $25,927.00 |
| Â | investories | Â | $3,695.00 | $2,302.00 |
| Â | Â | total current assets | $54,306.00 | $39,715.00 |
| long term investments | Â | Â | $48,059.00 | $25,837.00 |
| net property and equipment | Â | Â | $52,450.00 | $49,549.00 |
| total assets | Â | Â | $154,815.00 | $115,101.00 |
| Â | Â | Â | Â | Â |
| Liabilities and equity | Â | Â | Â | Â |
| Â | Â | Â | Â | Â |
| current liabilities | Â | Â | Â | Â |
| Â | notes payable | Â | $4,334.00 | $3,345.00 |
| Â | account payable | Â | $5,022.00 | $6,933.00 |
| Â | accrued expenses | Â | $6,069.00 | $5,037.00 |
| Â | Â | total current liabilitiees | $15,425.00 | $15,315.00 |
| long term debt | Â | Â | $85,322.00 | $53,578.00 |
| Â | Â | total liabilities | $100,747.00 | $68,893.00 |
| Net assets (equity) | Â | Â | $54,068.00 | $46,208.00 |
| total liabilities and equity | Â | Â | $154,815.00 | $115,101.00 |