b.What is Best Care’s net working capital for 2004?c.What is Best Care’s debt ratio? How does it compare with Sunnyvale’s debt ratio?
Problem 4.6Consider this balance sheet:Green Valley Nursing Home, Inc.Balance SheetDecember 31, 2004AssetsCurrent Assets:Cash and cash equivalents $ 105,737Investments 200,000Net patient accounts receivable 215,600Supplies 87,655Total current assets $ 608,992Property and equipment $2,250,000Less accumulated depreciation 356,000Net property and equipment $1,894,000Total assets $2,502,992Liabilities and Shareholders’ EquityCurrent Liabilities:Accounts payable $ 72,250Accrued expenses 192,900Notes payable 180,000Total current liabilities $ 445,150Long-term debt $1,700,000Shareholders’ Equity:Common stock, $10 par value $ 100,000Retained earnings 257,842Total shareholders’ equity $ 357,842Total liabilities and shareholders’ equity $2,502,992a.How does this balance sheet differ from the ones presented in Table 4.1 and Problem 4.5?b.What is Green Valley’s net working capital for 2004?
c.What is Green Valley’s debt ratio? How does it compare with the debt ratios for Sunnyvale and Best Care?