CONSIDER THE FOLLOWING FINANCIAL STATEMENTS FOR BESTCARE HMO, A NON PROFIT MANAGED CARE PLAN:

BESTCARE HMO STATEMENT OF OPERATIONS AND CHANGE IN NET ASSETS, YEAR ENDED JUNE 30, 2015 (IN THOUSANDS)

CALCULATE A Times Interest Earned Ratio and interpret using the following data please show work.

Revenue
Premiums earned	26,682
Coinsurance	1,689
Interest and other income	242
Total Revenue	28,613
Expenses
Salaries and benefits	15,154
Medical supplies and drugs	7,507
Insurance	3,963
Provision for bad debts	19
Depreciation	367
Interest	385
Total Expenses	27,395
Net income	1,218
Net assets, beginning of year	900
Net assets, end of year	2,118

Bestcare HMO Balance Sheet, June 30, 2015 (in thousands)

Assets
Cash and cash equivalents	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	141
Current portion of long term debt	241
Total current liabilities	3,456
Long term debt	4,295
Total liabilities	7,751
Net assets (equity)	2,118
Total liabilities and net assets	9,869