Review the following information on balance sheet analysis and business calculations:

Balance Sheet Analysis

Calculating Debt Ratio in Excel

Calculating Working Capital

Review the following balance sheet:

Best Care Health Maintenance Organization (HMO)

Balance Sheet

June 30, 2011 (in thousands)

Assets

Current assets:

Cash

Net premiums receivable

Supplies

$2,737

$821

$387

Total current assets

$3,945

$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

$3,456

Long-term debt

$4,295

Total liabilities

$7,751

$7,751

Total assets

$9,869

Net assets-unrestricted (equity)

$2,118

Total liabilities and net assets

$9,869

Answer the following questions after your analysis:

• What is Best Care's net working capital for 2011? Show your work.
• What is Best Care's debt ratio? Show your work.