Sereu ne TUUU UUDID 13.4 Consider the following financial statements for BestCare, a not-for-profit health insurer. BestCare Health Insurer Statement of Operations, Year Ended June 30, 2016 (in Thousands) Revenue Healthcare premiums $26,682 Fees and other revenue 1,689 Net investment income 242 Total revenues $28,613 Benefits and expenses Healthcare costs $ 15,154 Operating expenses Selling expenses 3,963 General and administrative 7,893 expenses Interest expense 385 Total expenses $ 27,395 Net income $ 1,218 BestCare Health Insurer Balance Sheet, June 30, 2016 in Thousands) ASSETS Cash and cash equivalents Net premiums receivable Other current assets Total current assets Long-term investments Net property and equipment $2.737 821 387 $3.945 $4.424 $1.500 59,869 Total assets LIABILITIES AND EQUITY Healthcare costs payable Accrued expenses Unearned premiums Total current liabilities $2.145 929 382 $3,456 $4.295 Long-term debt Total liabilities Equity Total liabilities and equity $ 7.751 $ 2,118 $9,869 Perform a DuPont analysis on BestCare. Assume that the sector average ratios are as follows: 3.8% 2.1 Total margin Total asset turnover Equity multiplier Return on equity 25.5% b. Calculate and interpret the following ratios for BestCare. Sector Average 8.0% 1.3 41 days 7 days Return on assets Current ratio DCOH (assume depreciation expense is $367) Average collection period Debt ratio Debt-to-equity ratio Times interest earned ratio Fixed-asset turnover ratio 69% 2.2 2.8 18.5