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