BestCare HMO Statement of Operations and Change in Net Assets Year Ended June 30, 2004 (in thousands) Revenue: Premiums earned $26,682 Co-insurance 1,689 Interest and other income…

Based on the information below answer the two questions.
1. 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- 3.2
Return on equity- 25.5%

2. Calculate and interpret the following ratios for BestCare:
Industry Average
Return on assets- 8.0%
Current ratio- 1.3
Days cash on hand- 41 days
Average collection period- 7 days
Debt ratio- 69%
Debt-to-equity ratio- 2.2
Times interest earned ratio- 2.8
Fixed asset turnover ratio- 5.2

Don't use plagiarized sources. Get Your Custom Essay on
BestCare HMO Statement of Operations and Change in Net Assets Year Ended June 30, 2004 (in thousands) Revenue: Premiums earned $26,682 Co-insurance 1,689 Interest and other income…
From as low as $9/Page
Order Essay

BestCare HMO
Statement of Operations and Change in Net Assets
Year Ended June 30, 2004
(in thousands)

Revenue:
Premiums earned $26,682
Co-insurance 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
556 Healthcare Finance

Net income $ 1,218

Net assets, beginning of year $ 900
Net assets, end of year $ 2,118

BestCare HMO
Balance Sheet
June 30, 2004
(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

How to place an order?

Take a few steps to place an order on our site:

  • Fill out the form and state the deadline.
  • Calculate the price of your order and pay for it with your credit card.
  • When the order is placed, we select a suitable writer to complete it based on your requirements.
  • Stay in contact with the writer and discuss vital details of research.
  • Download a preview of the research paper. Satisfied with the outcome? Press “Approve.”

Feel secure when using our service

It's important for every customer to feel safe. Thus, at The Homework Writings, we take care of your security.

Financial security You can safely pay for your order using secure payment systems.
Personal security Any personal information about our customers is private. No other person can get access to it.
Academic security To deliver no-plagiarism samples, we use a specially-designed software to check every finished paper.
Web security This website is protected from illegal breaks. We constantly update our privacy management.

Get assistance with placing your order. Clarify any questions about our services. Contact our support team. They are available 24\7.

Still thinking about where to hire experienced authors and how to boost your grades? Place your order on our website and get help with any paper you need. We’ll meet your expectations.

Order now Get a quote