Case 4.3. Using Excel to Assess Working Capital and the Current Ratio PROBLEM Goodfellow & Perkins LLP is a successful mid-tier accounting firm with a large range of clients across Texas. During 2025, Goodfellow & Perkins gained a new client, Brookwood Pines Hospital (BPH), a private, not-for-profit hospital. The fiscal year-end for BPH is June 30. Goodfellow & Perkins is performing the audit for the fiscal year-end June 30, 20266. The assets section of the balance sheet as of June 30, 2026 and 2025 is presented here. Brookwood Pines Hospital Balance Sheet (in thousands) June 30 Assets 2026 2025 Cash and cash equivalents $ 43,077 $ 36,361 Short-term investments 22,725 49,338 Patient accounts receivable, net 119,380 99,962 Current portion of pledges and grants 9,208 5,099 receivable, net Current portion of insurance recoverable 2,364 1,953 Inventory 10,740 10,056 Other current assets 25,792 23,193 Total current assets 233,286 225,962 Long-term investments 915,088 807,321 Property and equipment, net 576,432 538,981 Prepaid pension cost 19,760 7,248 Insurance recoverable, less current portion 11,619 10,723 Other assets, net 31,535 28,463 Total assets $ 1,787,720 $ 1,618,698 Liabilities and net assets Accounts payable Accrued salaries and benefits $ 38,431 $ 39,547 52,361 50,754 Grants payable, current portion 6,459 8,459 Accrued expenses and other current liabilities 19,209 27,380 Due to third-party payors 72,494 67,687 Current accrued liabilities under self- 15,709 14,965 insurance programs Current maturities of long-term debt 5,040 4,928 Short-term debt 14,550 Long-term debt subject to short-term 53,132 refinancing agreements Total current liabilities 224,253 266,852 Long-term debt, net, less current liabilities 220,796 179,530 Accrued liabilities under self-insurance 82,618 82,559 programs, less current portion Grants payable, less current portion 13,245 16,489 Other liabilities 42,669 48,336 Total liabilities 583,581 593,766 Net assets Without donor restrictions With donor restrictions Total net assets Total liabilities and net assets 1,138,140 962,652 65,999 62,280 1,204,139 1,024,932 $ 1,787,720 $ 1,618,698 BPH provides medically necessary care to patients, regardless of their ability to pay. Both uninsured and underinsured patients are offered discounts of up to 100% of charges based on their income as a percentage of the federal poverty-level guidelines. BPH does not pursue collection of these accounts; therefore, they are not reported in patient service revenue and accounts receivable. The cost of providing the charity care is included in operating expenses. BPH's investments consist of mutual funds, common equities, corporate and U.S. government debt issues, state and municipal government debt issues, and trusts. A majority of the investments are the result of charitable contributions to the hospital by generous donors. Earnings from the investments are used to cover the costs of the charity care. BPH is also eligible for certain government grants to help cover the costs of the charity care. Selected financial statements and other financial information are provided below. Since BPH operates as a non-for-profit, it reports assets, liabilities, and net assets. (Note: Net assets takes the place of equity since there are no owners.) Student Work Area Required: Provide input into cells shaded in yellow in this template. Use mathematical formulas with cell references to the Problem and work areas as indicated. Calculate working capital and the current ratio for 2026 and 2025 in thousands and the percentage change in the current ratio over the two-year period. Working capital Current ratio 2026 Percentage change Evaluate Brookwood Pines Hospital's current ratio. The current ratio is a measure of the company's The current ratio 2025 over the two-year period. The ratio indicates that the Brookwood Pines may