Consider this balance sheet:

a. How does this balance sheet differ from the ones presented in exhibit 4.1 and problem 4.5?

b. What is Blue Sky’s net working capital for 2020?

c. What is Blue Sky’s debt ratio? How does it compare with the debt ratios for Sunnyvale and Best Care?

Problem 4.5

Consider the following balance sheet:

Transcribed Image Text:

Blue Sky Nursing Home, Inc. Balance Sheet December 31, 2020 Assets Current Assets: Cash and cash equivalents $ 105,737 Short-term securities investments 200,000 Net accounts receivable 215,600 87,655 Supplies Total current assets Property and equipment Less accumulated depreciation Net property and equipment Total assets Liabilities and Shareholders' Equity Current Liabilities: $ 608,992 $ 2,250,000 356,000 $ 1,894,000 $ 2,502,992 Accounts payable $ 72,250 Accrued expenses 192,900 Notes payable 100,000 Current portion of long-term debt 80,000