GATE

Please show work in excel.

6. Finally, the CFO wants to know if the consolidated balance sheet's Debt/Equity ratio is below 2.5 if so, it will allow Apache to buy the gates Is Apache's ratio low enough that they can borrow to buy the gates? A B D E Actual 2018 192 13,033 3,325 16,358 2019 195 15,460 3,830 19,290 Projected 2020 232 18,385 4,393 22,778 2021 280 22,090 5,105 27,195 1 2 Balance Sheet 6 Prepaid 7 Current Assets 8 Other 9 Total Assets 10 11 Bank Loan 12 Payables 13 CPLTD 14 Other 15 Current Liabilities 16 LTD 17 18 Equity 19 Total Liabilities & Equity 20 21 Ratios: 22 Bank Loan to Receivables 23 Liabilities / Equity 24 Debt / Equity 6,070 3,057 433 1,477 11,037 2.458 7,586 3,705 450 1,712 13,453 2,008 9,321 4,417 450 1,994 16,182 1,558 11,404 5,320 450 2,350 19,524 1,108 2,863 16,358 3,829 19,290 5,038 22,778 6,563 27,195 0.9 4.7 3.1 0.9 4.0 2.6 0.9 3.5 2.2 0.9 3.1 2.0 E B Actual 2018 D Projected 2020 2019 2021 A 1 2 Balance Sheet 3 Cash 4 Notes and Acc. Rec. 5 Inventory 6 Prepaid 7 Current Assets 8 Other 9 Total Assets 10 11 Bank Loan 12 Payables 13 CPLTD 14 Other 15 Current Liabilities 16 LTD 17 Equity 18 Total Liabilities & Equity 19 20 Ratios: 21 Bank Loan to Receivables 22 Liabilities / Equity 23 Debt / Equity 1 B D E F G I J Start Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 2 Investment S 800,000.00 3 Working Capital S 300,000.00 4 Operating Cash Flow $ 265,000.00 $ 265,000.00 $ 265,000.00 $ 265,000.00 $ 265,000.00 $ 265,000.00 $ 265,000.00 $ 265,000.00 5 Total Cash Flow S (1,100,000.00) $ 265,000.00 $ 265,000.00 $ 265,000.00 $ 265,000.00 $ 265,000.00 $ 265,000.00 $ 265,000.00 $ 265,000.00 6 7 NPV S 368,363.89 17.43% 8 IRR 9 10 Note: Show all numbers in thousand dollars. 6. Finally, the CFO wants to know if the consolidated balance sheet's Debt/Equity ratio is below 2.5 if so, it will allow Apache to buy the gates Is Apache's ratio low enough that they can borrow to buy the gates? A B D E Actual 2018 192 13,033 3,325 16,358 2019 195 15,460 3,830 19,290 Projected 2020 232 18,385 4,393 22,778 2021 280 22,090 5,105 27,195 1 2 Balance Sheet 6 Prepaid 7 Current Assets 8 Other 9 Total Assets 10 11 Bank Loan 12 Payables 13 CPLTD 14 Other 15 Current Liabilities 16 LTD 17 18 Equity 19 Total Liabilities & Equity 20 21 Ratios: 22 Bank Loan to Receivables 23 Liabilities / Equity 24 Debt / Equity 6,070 3,057 433 1,477 11,037 2.458 7,586 3,705 450 1,712 13,453 2,008 9,321 4,417 450 1,994 16,182 1,558 11,404 5,320 450 2,350 19,524 1,108 2,863 16,358 3,829 19,290 5,038 22,778 6,563 27,195 0.9 4.7 3.1 0.9 4.0 2.6 0.9 3.5 2.2 0.9 3.1 2.0 E B Actual 2018 D Projected 2020 2019 2021 A 1 2 Balance Sheet 3 Cash 4 Notes and Acc. Rec. 5 Inventory 6 Prepaid 7 Current Assets 8 Other 9 Total Assets 10 11 Bank Loan 12 Payables 13 CPLTD 14 Other 15 Current Liabilities 16 LTD 17 Equity 18 Total Liabilities & Equity 19 20 Ratios: 21 Bank Loan to Receivables 22 Liabilities / Equity 23 Debt / Equity 1 B D E F G I J Start Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 2 Investment S 800,000.00 3 Working Capital S 300,000.00 4 Operating Cash Flow $ 265,000.00 $ 265,000.00 $ 265,000.00 $ 265,000.00 $ 265,000.00 $ 265,000.00 $ 265,000.00 $ 265,000.00 5 Total Cash Flow S (1,100,000.00) $ 265,000.00 $ 265,000.00 $ 265,000.00 $ 265,000.00 $ 265,000.00 $ 265,000.00 $ 265,000.00 $ 265,000.00 6 7 NPV S 368,363.89 17.43% 8 IRR 9 10 Note: Show all numbers in thousand dollars