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Balance Sheet for Current Assets

BestCare HMO
Balance Sheet
June 30, 2007
(in thousands)

Assets
Current Assets
Cash $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 382

Total current liabilities $3,456

Long-term debt $4,295

Total liabilities $7,751

Net assets-unrestricted (equity) $2,118

Total liabilities and net assets $9,869

a. How does this balance sheet differ from Sunnyvale?

Sunnyvale Clinic
Balance Sheet
December 31,2007 and 2006
(in thousands)
______________________________________________________________.
ASSETS 2007 2006
Current Assets:
Cash $ 12,102 $ 6,486
Short-term investments $ 10,000 5,000
Net patient accounts receivable $ 28,509 25,927
Inventories 3,695 2,302
$ 54,306 $ 39,715
Long-Term investments $ 48,059 $ 25,837

Property and Equipment (Fixed Assets:
Land $ 2,954 $ 2,035
Building and equipment 85,595 $ 77,208
Gross fixed assets 88,549 $ 79,243
Less: Accumulated depreciation 36,099 $ 29,694
Net fixed assets $ 52,450 $ 49,549
Total assets $154,815 $115,101

LIABILITIES AND EQUITY 2007 2006
Current Liabilities
Notes payable 4,334 3,345
Accounts payable 5,022 6,933
Accrued expenses: 6,069 5,037
Total current liabilities $ 15,425 $ 15,315
Long-term debt $ 85,322 $ 53,578
Total liabilities $100,747 $ 68,893
Net assets (Equity) 54,068 $ 46,208
Total liabilities and equity $ 154,815 $,115,101

b. What is BestCare's net working capital for 2007?
c. What is BestCare's debt ratio? How does it compare with Sunnyvale's debt ratio?

Solution Summary

Balance sheets for current assets are examined.

$2.19