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Below are ratios of ExxonMobie: Exxons current and quick ratios for the 2019 and 2018...

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Question

Accounting

Below are ratios of ExxonMobie:

Exxons current and quick ratios for the 2019 and 2018 fiscal years

Annual data

2019

2018

Current assets

50,052,000

47,973,000

Inventory

18,528,000

18,958,000

Current liabilities

63,989,000

57,138,000

(Yahoo finance, 2020)

Industrial averages

Ratio

2019

2018

Current ratio

1.02

1.10

Quick ratio

0.87

0.92

Current Ratio = Current assets/Current liabilities

For 2019:

Current Ratio= 50,052,000/63,989,000= 0.7895 = 0.79

For 2018:

Current Ratio= 47,973,000/57,138,000= 0.8396 = 0.84

Quick Ratio= current assets- inventory/ current liabilities

For 2019:

Quick ratio= 50,052,000-18528,000/63,989,000= 0.4926 = 0.49

For 2018:

Quick ratio= 47,973,000-18,958,000/57,138,000= 0.5078 = 0.51

PLease respond to the question below:

For the change in ratio question, you listed some general reasons why these ratios may change. Can you get more specific with Exxon? In analyzing their statements and reading about the company, why do you believe the ratios have changed. For example, did the company take on more debt, are they expanding, etc...

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