Problem 4.5

a.How does this balance sheet differ from the one presented in Exhibit 4.1 for Sunnyvale?

b.What is BestCare's net working capital for 2015?

c.What is BestCare's debt ratio? How does it compare with Sunnyvale's debt ratio?

oProblem 4.6

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

b.What is Green Valley's net working capital for 2015?

c.What is Green Valley's debt ratio? How does it compare with the debt ratios for Sunnyvale and BestCare?

Page 3 of 10 o Problem 4.5 4.5 Consider the following balance sheet: 1966 words X Assets Current Assets: Cash Net premiums receivable Supplies Total current assets BestCare HMO Balance Sheet June 30, 2015 (in thousands) Net property and equipment Total assets Liabilities and Net Assets Accounts payable-medical services Accrued expenses Notes payable Total current liabilities Long-term debt Total liabilities Net assets-unrestricted (equity) Total liabilities and net assets English (United States) $2,737 821 387 $3,945 5,924 $9,869 $2,145 929 382 $3,456 4,295 $7,751 2,118 $9,869 122 Healthcare Finance EXHIBIT 4.1 Sunnyvale Clinic: Balance Sheets December 31, 2015 and 2014 (in thousands) Assets Current Assets: Cash and cash equivalents Short-term investments Net patient accounts receivable Inventories Total current assets Long-term investments Net property and equipment Total assets Liabilities and Equity Current Liabilities: Notes payable Accounts payable Accrued expenses Total current liabilities Long-term debt Total liabilities Net assets (Equity) Total liabilities and equity Focus TY 2015 $12,102 10,000 28,509 3,695 $54,306 48,059 52,450 $154,815 $ 4,334 5,022 6,069 $ 15,425 85,322 $100,747 54,068 $154,815 2014 $ 6,486 5,000 25,927 2,302 $ 39,715 25,837 49,549 $ 115,101 $ 3,345 6,933 5,037 $ 15,315 53,578 $68,893 46,208 $115,101 + 200%