Consider the following balance sheet:

BestCare HMO

Balance Sheet

June 30, 2011

(in thousands)

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 payablemedical

Services $2,145

Accrued expenses 929

Notes payable 382

Total current liabilities $3,456

Long-term debt $4,295

Total liabilities $7,751

Net assetsunrestricted

(equity) $2,118

Total liabilities and net

Assets $9,869

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

b. What is BestCares net working capital for 2011?

c. What is BestCares debt ratio? How does it compare with Sunnyvales debt ratio?

Exhibit 4.1

Assets			2011	2010
Current Assets
	Cash and cash equivalents		$12,102.00	$6,486.00
	Short term investments		$10,000.00	$5,000.00
	net patient accounts receivable		$28,509.00	$25,927.00
	investories		$3,695.00	$2,302.00
		total current assets	$54,306.00	$39,715.00
long term investments			$48,059.00	$25,837.00
net property and equipment			$52,450.00	$49,549.00
total assets			$154,815.00	$115,101.00
Liabilities and equity
current liabilities
	notes payable		$4,334.00	$3,345.00
	account payable		$5,022.00	$6,933.00
	accrued expenses		$6,069.00	$5,037.00
		total current liabilitiees	$15,425.00	$15,315.00
long term debt			$85,322.00	$53,578.00
		total liabilities	$100,747.00	$68,893.00
Net assets (equity)			$54,068.00	$46,208.00
total liabilities and equity			$154,815.00	$115,101.00