QUESTION
Problem 4.6 from page
142, Chapter 4
1. How does this balance sheet differ from the ones
presented in Exhibit 4.1 and Problem 4.5?
2. What is Green Valleyâs net working capital for 2011?
3. What is Green Valleyâs debt ratio? How does it compare
with the debt ratios for Sunnyvale and
BestCare?
Consider the following financial statement for BestCare HMO,
a not-for=profit managed care plan.
Problem 17.4 from pages 639â640, Chapter 17
1. Perform a Du Pont
analysis on BestCare. Assume that the industry average ratios are as follows.
Total margin 3.8%.
Total assest turnover 2.1
Equity multiplier 3.2
Return on equity (ROE) 25.5%
2. Calculate and
interpret the following ratios for BestCare:
Industry Average
Return on assets
(ROA) 8.0%
Current ratio
1.3
Days cash on
hand 41 days
Average collection
period 7days
Debt ratio
69%
Debt âto-equity
ratio 2.2
Times interest
earned (TIE) ratio 2.8
Fixed asset turnover
ratio 5.2
ANSWER:
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