Apache Corporation (APA) is an independent energy company that explores, develops, and produces oil and gas products. Apache operates worldwide, including in the United States, Canada, and the North Sea. The profitability of the oil and gas business is highly influenced by the price of crude oil and natural gas, and by the success in finding oil and gas. Selected financial information for Apache for three recent years follows (in millions):

a. Determine the days’ cash on hand for each year.
b. Interpret the results.
c. What are some ways a company can respond to a liquidity squeeze?

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Balance sheet, end of year: Cash Income statement: Operating expenses Depreciation expense Year 3 $714 6,466 2,405 Year 2 $1,668 5,505 2,280 Year 1 $1,377 7,036 2,618