stry average for both 2014 and 2015. $26,682 1,689 242 $28,613 17.4 Consider the following financial statements for BestCare HMO, a not-for-profit managed care plan: BestCare HMO Statement of Operations and Change in Net Assets, Year Ended June 30, 2015 Net property and equipment (in thousands) Revenue: Premiums earned Coinsurance Interest and other income Total revenues 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 $ 1,218 900 Net assets, beginning of year Net assets, end of year $ 2,118 BestCare HMO Balance Sheet, June 30, 2015 (in thousands) Assets: Cash and cash equivalents Net premiums receivable Supplies Total current assets $2,737 821 387 $3,945 $5,924 $9,869 Total assets (continued (continued from previous page) 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 a. Perform a Du Pont analysis on BestCare. Assume that the industry average ratios are as follows: Total margin 3.8% Total asset turnover 2.1 Equity multiplier Return on equity (ROE) 25.5% 3.2 b. Calculate and interpret the following ratios for Best Care: Return on assets (ROA) Current ratio Days cash on hand Average collection period Debt ratio Debt-to-equity ratio Times interest earned (TIE) ratio Fixed asset turnover ratio Industry Average 8.0% 1.3 41 days 7 days 69% 2.2 2.8 5.2