4.1

Middleton Clinic had total assets of $500,000 and an equity balance of $350,000 at the end of 2014. One year later, at the end of 2015, the clinic had $575,000 in assets and $380,000 in equity. What was the clinics dollar growth in assets during 2015, and how was this growth financed?

4.5

BestCare HMO Balance Sheet

June 30. 2015

(In Thousands)

Assets:

Cash $2737

Net Premiums receivable 821

Supplies 387

Total current assets $3,945

Net property equipment 5,924

Total Asets $9,869

______

Liabilities and Net Assets

Acounts payable-medical $2,145

Servives

Accrued expenses 929

Notes Payable 382

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

_____

4.6

Green Valley Nursing Home, Inc. Balance Sheet December 31, 2015

Current Assets:

Cash $105,737

Short-term investments 200,000

Net patient accounts recievable 215,600

Supplies 87.655

Total current assets $608,992

Property and equipment $2,250,000

Less accumulated depreciation 356,000

Net property and equipment $1,894,000

Total Asets $2,502,992

______

Liabilities and Shareholders equity

Current Liabilities:

Acounts payable $72,250

Accrued expenses 192,900

Notes Payable 180,000

Total current liabilities $445,150

Long-term debt $1,700,000

Total Liabilities $2,145,150

Shareholders Equity:

Common stock, $10 par value $100,000

Retained earnings 257,842

Total shareholders equity $357,842

Total liabilities and shareholders equity $2,502,992

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 Valleys net working capital for 2015?

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