What is bestcares net working capital for 2007 what is

Question

Question # 1

a. How does this balance sheet differ from the one presented in Table 1 for Sunnyvale?

b. What is BestCare's net working capital for 2007?

c. What is BestCare's debt ratio? How does it compare with the debt ratio for Sunnyvale?

Question # 2

a. In the last decade, has the role of finance become more important or less important? Why? Is this good or bad?

b. Comment on the role of finance in the Healthcare industry. What do you see as its role?

TABLE 1: Sunnyvale Clinic: Balance Sheet-

Sunnyvale Clinic: Balance Sheet December 31, 2007 and 2006 (in thousands)
ASSETS	2007	2006
Current Assets:
Cash	$12,102	$6,486
Short-term investments	io,000	5=o
Net patient accounts receivable	28,509	25.927
Inventories	3.695	2,302
Total current assets	$54.31	$39.72
Long-term investments	$48.06	$25.84
Property and Equipment (Fixed Assets):
Land	$2,954	$2.04
Buildings and equipment	85.595	77.208
Gross fixed assets	$88,549	$79.24
Less: Accumulated depreciation	36,099	29,694
Net fixed assets	$52.45	$49.55
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	$85.32	$53.58
Total liabilities	$100.75	$68,893
Net assets (Equity)	$54.07	$46,208
Total liabilities and equity	$154.82	$115,101

Table 2: BestCare HMO Balance Sheet-

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