Purchase Solution

Exxon Mobil

Not what you're looking for?

Ask Custom Question

Review ExxonMobil's most recent 2-3 years financial reports (balance sheet, statements of cash flow, managements comments, and footnotes to the financial statements) to explain how each of the current asset and liability accounts have affected the cash management strategies. In addition, assume next year's forecasted revenues will increase by 20%. Provide a detailed working capital recommendation to senior management based on the next year's increase in revenue along with the assumptions you make regarding all of the other financial line items in the pro forma financial statements. Be sure to discuss the impact of this revenue increase on the firm's working capital policy. In your conclusion, identify lessons learned and discuss areas for further development. Be sure to properly cite your references.

Explain how each of the current asset and liability accounts have affected the cash management strategies.

Purchase this Solution

Solution Summary

Review ExxonMobil's most recent 2-3 years financial reports (balance sheet, statements of cash flow, managements comments, and footnotes to the financial statements) to explain how each of the current asset and liability accounts have affected the cash management strategies.

Solution Preview

If we observe the balance sheet of Exxon Mobil in the last 2 years, the only notable or major change appearing in the current assets and current liabilities account is in the area of Accounts Receivable and Accounts Payable. The company's accounts receivable for the financial year ending 31 December 2008 was 18707 million dollars, as compared to 30775 and 25076 in the previous couple of years. It is also to be noted that such decline was accompanies with an increase in overall sales. This goes to show that company has significantly improved on its collection strategies/policies and have significantly reduced the accounts receivable amount which, in turn, boosted its working capital and cash position. The company's collection department has done an outstanding job in terms of reducing the credit extended to the buyers of the company. Other items in the current assets category were relatively similar to ...

Solution provided by:
Education
  • BComm, University of Delhi
  • Post Graduate Diploma in Management (Equivalent to MBA), All India Management Association
Recent Feedback
  • "Thanks"
  • "Thanks"
  • "Very good! "
  • "thanks"
  • "Thank you!"
Purchase this Solution


Free BrainMass Quizzes
Learning Lean

This quiz will help you understand the basic concepts of Lean.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.