Consider the following balance sheet:

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 2020?

Exhibit 4.1

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

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BestCare HMO Balance Sheet June 30, 2020 Assets Current Assets: (in thousands) Cash and cash equivalents $2,737 Net premiums receivable 821 Other current assets 387 Total current assets $3,945 Long-term investments $4,424 Net property and equipment 1,500 Total assets $9,869 Liabilities and Equity Healthcare costs payable $2,145 Accrued expenses 929 Unearned premiums 382 Total current liabilities $3,456