17.4 Consider the following financial statements for BestCare HMO, a not-for-profit managed care plan:

a. Perform a Du Pont analysis on BestCare. Assume that the industryaverage ratios are as follows:Total margin                      3.8%Total asset turnover           2.1Equity multiplier                 3.2Return on equity (ROE)   25.5%b. Calculate and interpret the following ratios for BestCare:Industry AverageReturn on assets (ROA)          8.0%Current ratio                              1.3Days cash on hand                 41daysAverage collection period        7daysDebt ratio                                       69%Debt-to-equity ratio                      2.2Times interest earned (TIE) ratio 2.8Fixed asset turnover ratio            5.2

 
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