BestCare HMO
				Statement of Operations and Change in Net Assets
				Year Ended June 30, 2020 (in thousands)
Revenue:						Common Size Analysis	For the Statement of Operations (Income Statement), express each account as a percentage of Total Revenue
Healthcare premiums		$27,482
Fees and Other Revenue		$2,189
Interest and other income		$742
Total Revenues			$30,413
Expenses:
Healthcare Costs			$15,579
General and administrative expenses	$8,318
Sellling expenses			$4,388
Interest Expense			$810
Total expenses			$29,095
Net Income			$1,318
Net Assets, beginning of year		$1,401
Net Assets, end of year			$2,719
				BestCare HMO
				Balance Sheet
				June 30, 2020 (in thousands)
Assets:						Common Size Analysis	For the Balance Sheet, express each account as a percentage of Total Assets.
Cash and cash equivalents		$4,540
Net premiums receivable		$1,422
Other current assets			$988
Total current assets			$6,950
Net property and equipment		$6,525
Total assets			$13,475
Liabilities and Net Assets:
Healthcare costs payable		$2,746
Accrued expenses			$1,530
Unearned premiums			$742
Current portion of long-term debt		$842
Total current liabilities			$5,860
Long-term debt			$4,896
Total liabilities			$10,756
Net Assets (Equity):			$2,719
Total liabilities and net assets		$13,475
a. Perform a Du Pont analysis on the BestCare. Assume that the peer group average ratios are as follows:
				Industry average		BestCare Ratios	Interpretation
	Total margin		3.8%		?	Provide an interpretaion of the DuPont Analysis as a set of ratios.
	Total asset turnover		2.1		?
	Equity multiplier		3.2		?
	Return on equity (ROE)	25.5%		?
b. Calculate and interpret the following ratios for the BestCare:
				Industry average		BestCare Ratios	Interpretation
	Return on assets (ROA)	8.0%		?
	Current ratio		1.3		?
	Days cash on hand		41	days	?
	Average collection period	7	days	?
	Debt ratio			69%		?
	Debt-to-equity ratio		2.2		?
	Times interest earned (TIE) ratio	2.8		?
	Fixed asset turnover ratio	5.2		?