What is the solution to Chapter 17. 4 problem B?

17.4. BestCare HMO
The following items are given
BestCare HMO
Statement of Operations
Year Ended June 30, 2015
	(in 000s)
Revenue:
Premiums earned	$26,682
Coinsurance	1,689
Interest and Other Income	242
Total revenues	$28,613
Expenses:
Salaries and benefits	$15,154
Medical supplies and drugs	7,507
Insurance	3,963
Provision for bad debts	19
Depreciation	267
Interest	385
Total Expenses	$27,395
Net Income	$1,218
Net assets, beginning of year	$900
Net assets, end of year	$2,118
BestCare HMO
Balance Sheet
June 30, 2015
	(in 000s)
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 payable - medical services	$2,145
Accrued Expenses	929
Notes payable	141
Current portion of long-term debt	241
Total current liabilities	$3,456
Long-term debt	4,295
Total liabilities	$7,751
Net assets - unrestricted (equity)	2,118
Total liabilities and net assets	$9,869
a. Perform a Du Pont analysis on BestCare. Assume that the industry average ratios are as follows:
Total margin	3.80%
Total asset turnover	2.10%
Equity multiplier	3.20%
Return on equity	25.50%
b. Calculate and interpret the following ratios for BestCare:
	Industry	BestCare
Return on Assets	8.00%
Current Ratio	1.3
Days cash on hand (days)	41
Average collection period (days)	7
Debt ratio	69%
Debt-to-Equity ratio	2.2
Times interest earned (TIE) ratio	2.8
Fixed Asset turnover ratio	5.2