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Apache Corporation (APA) is an independent energy company thas explores, develops, and produces ot in igas products. Apache operates woridwide, inciuding in the United States,

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Apache Corporation (APA) is an independent energy company thas explores, develops, and produces ot in igas products. Apache operates woridwide, inciuding in the United States, Canada, and the North Sea. The profitabily of the oll and gas business is highly influenced by the peice 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 fin millions): a. Determine the days' cash on hand for each year. Assume a J65-day yeac. If requlred, round all computations to one decimal place and use in subsequent calculations. Round final answers to one decimal place. b. Why is Apache experiencing extreme fuctuations in dosys' cash on hand across the three years? 1. The pnces of crude bil and natural gas are highy volatie and wuch saings. will orrate cash fow management challenges 2. Apache is not able to efficiently manage its cash resources. 3. Apache spent huge amounts in vear tho on fixed assets and was not able to collect its dues on time. 4. Apache did not calculate the days' cash on hand correctiy over the theee wears. c. What are some nays a cempany can reteond to a liquidity squeere? 1. Seh comman wtock ta 0wners 2. Seatif asseti a. Determine the days' cash on hand for each year. Assume a 365-dav year. If required, round all computal calculations. Round final answers to one decimal place. b. Why is Apache experiencing extreme fluctuations in days' cash on hand across the three years? 1. The prices of crude oil and natural gas are highly volatile and such swings will create cash flow management 2. Anache is not able to efficiently manage its cash resources. che spent huge amounts in year two on fixed assets and was not able to collect its dues on time. 1 che did not calculate the days' cash on hand correctly over th hree years. ......ut are some ways a company can respond to a liquidity squeeze? c. What are some ways a company can respond to a liquidity squeeze? 1. Sell common stock to owners 2. Sell off assets 3. Increase the amount of dividends cpenses 1,2 and 3 1,2 and 4 2,3 and 4 None of the above

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