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 clinic's dollar growth in assets during 2015, and how was this growth financed?

4.2. San Mateo Healthcare had an equity balance of $1.38 million at the beginning of the year.At the end of the year, its equity balance was $1.98 million.

4.2.a. San Mateo Healthcare had an equity balance of $1.38 million at the beginning of the year.At the end of the year, its equity balance was $1.98 million.

Assume that San Mateo is a not-for-profit organization.What was its net income for the period?

4.2.b. San Mateo Healthcare had an equity balance of $1.38 million at the beginning of the year.At the end of the year, its equity balance was $1.98 million.

Now, assume that San Mateo is an investor-owned business.

• Assuming zero dividends, what was San Mateo's net income?

• Assuming $200,000 in dividends, what was its net income?

• Assuming $200,000 in dividends and $300,000 in additional stock sales, what was San Mateo's net income?

4.5. Consider the following balance sheet.

Best Care HMO

Balance Sheet

June 30, 2015

(in thousands)

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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$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

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

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

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