b What is Best Cares net working capital for 2004 9869 929 10798 cWhat is Best

B what is best cares net working capital for 2004

This preview shows page 2 - 4 out of 4 pages.

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?
Image of page 2
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?
Image of page 3
c.What is Green Valley’s debt ratio? How does it compare with the debt ratios for Sunnyvale and Best Care?
Image of page 4

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture