INFOMATION

Consider the following financial statements for BestCare HMO, a not-for-profit managed care plan:

Statement of Operations and Change in Net Assets (in thousands)

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
Rent	$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

Balance Sheet

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 paybable	$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

QUESTIONS *MUST ANSWER ALL TO GET THUMBS UP*

1. What is the total margin (2 decimal places)

2. What is the total asset turnover (2 decimal places)

3. What is equity multiplier (2 decimal places)

4. What is ROE (2 decimal places)

5. If the company was able to lower its debt so that its equity multiplier fell to the industry average, 3.2, what would be the ROE (2 decimal places)