Use only the information outlined below ($ in millions; YE 12/31/20):

Cash 25 Accounts Payable 70

Accounts Receivable 120 Accruals 50

Inventories 100 CMLTD 25

Prepaids 10

PP&E 113 Long Term Debt 150

Goodwill 37

Equity 110

Revenues: $500

EBIT: $145

Depreciation/Amortization $16

Interest Expense: $5

Tax Rate: 25%

01/01/20 PPE: $100

2019 CMLTD: $30

Is the Company in compliance with the following covenants (show all your calculations)? Total of 19 points

1. Maximum Debt/Tangible Net Worth of 1.2:1.0 on 12/31/20 4 pts

2. Maximum Debt/EBITDA of 3.5:1.0 on 12/31/20 3 pts

3. Minimum Quick Ratio of 2.0:1.0 on 12/31/20 4 pts

4. Minimum Debt Service Coverage Ratio for 2020 of 1.5:1.0. For this purpose, assume the numerator in this equation is EBITDA Cash Taxes Capital Expenditures. 8 pts