{"id":6656,"date":"2021-10-10T02:24:54","date_gmt":"2021-10-10T02:24:54","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/17-4-consider-the-following-financial-statements-for-bestcare-hmo-a\/"},"modified":"2021-10-10T02:24:54","modified_gmt":"2021-10-10T02:24:54","slug":"17-4-consider-the-following-financial-statements-for-bestcare-hmo-a","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/17-4-consider-the-following-financial-statements-for-bestcare-hmo-a\/","title":{"rendered":"17.4 consider the following financial statements for bestcare hmo, a"},"content":{"rendered":"<div>\n<p>a. Perform a Du Pont analysis on BestCare. Assume that the industry<\/p>\n<p>average ratios are as follows:<\/p>\n<p>Total margin \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a03.8%<\/p>\n<p>Total asset turnover \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 2.1<\/p>\n<p>Equity multiplier \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 3.2<\/p>\n<p>Return on equity (ROE) \u00a0 25.5%<\/p>\n<p>b. Calculate and interpret the following ratios for BestCare:<\/p>\n<p>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Industry Average<\/p>\n<p>Return on assets (ROA) \u00a0 \u00a0 \u00a0 \u00a0 \u00a08.0%<\/p>\n<p>Current ratio \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a01.3<\/p>\n<p>Days cash on hand \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 41days<\/p>\n<p>Average collection period \u00a0 \u00a0 \u00a0 \u00a07days<\/p>\n<p>Debt ratio \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 69%<\/p>\n<p>Debt-to-equity ratio \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a02.2<\/p>\n<p>Times interest earned (TIE) ratio 2.8<\/p>\n<p>Fixed asset turnover ratio \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a05.2<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>a. Perform a Du Pont analysis on BestCare. Assume that the industry average ratios are as follows: Total margin \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a03.8% Total asset turnover \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 2.1 Equity multiplier \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 3.2 Return on equity (ROE) \u00a0 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-6656","post","type-post","status-publish","format-standard","hentry","category-homework-help"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/6656","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=6656"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/6656\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=6656"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=6656"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=6656"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}