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Use the following balance sheet for Wellness First Clinic (Exhibit 3) to answer questions 19

Exhibit 3 Wellness First Clinic Balance Sheet, As of December 31, 2015

Assets Liabilities and Equity

Cash $ 30,000 Accounts payable $20,000

Accounts receivable, net 60,000 Total current liabilities $20,000

Total current assets $ 90,000

Long-term investments $100,000 Long term debt $120,000 Net property & equipment $150,000 other long-term liabilities 10,000

Other assets $ 40,000 Total Liabilities $150,000

Total assets $380,000

Net Assets (equity) $?

Total liabilities and equity $380,000

1. What is the Clinics net assets (Equity) for 2015? (2 points)

a. $150,000 b. $230,000 c. $70,000 d. Noneoftheabove

2. What is the Clinics net working capital (NWC) for 2015? (2 points)

a. $90,000 b. $110,000 c. $70,000 d. None of the above

3. What is the Clinics debt ratio (DR) for 2015? (2 points)

a. 60.5% b. 22.2% c. 39.5% d. None of the above

4. What is the Clinics current ratio (CR) for 2015? (2 points)

a. 4.5 b. 2.5 c. 1.5 d. None of the above

5. In 2016, Wellness First Clinic (a non-profit) had a net income of $50,000. What will be Wellness First Clinics equity amount on its balance sheet for December 31, 2016? (2 points)

a. $230,000 b. $280,000 c. $180,000 d. It is not possible to determine based on the information given

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