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Question 1: DO you think ExxonMobile has sufficent cash or too much? Is it possible to have too much cash?

Question 2: Discuss how can management control cash?

ExxonMobil's Cash Position: Sources and Uses of Cash (millions of dollars) Net Cash: 2019 2018 Operating activities 29,716 36,014 Investing activities (23,084) (16,446) Financing activities (6,618) (19,446) Effect of exchange rate changes 33 (257) Increase/(Decrease in Cash & cash equivalents 47 (135) Total Cash & cash equivalents 3,089 3,042 (Source: Annual Reports ExxonMobil 2020). The statistics depict that the liquidity position has improved in 2019 as the increase in cash stood at $47 million as compared to its decrease of $135 million in 2018. Moreover, the total cash position value has also increased from $3,042 to $3,089 million. However, to support this assertion, the Cash ratio must be analyzed. Cash Ratio = Cash Assets/Current liabilities 2018 2019 3089/63989 = 0.05 3042/57138 = 0.05 ExxonMobil's Cash Position: Sources and Uses of Cash (millions of dollars) Net Cash: 2019 2018 Operating activities 29,716 36,014 Investing activities (23,084) (16,446) Financing activities (6,618) (19,446) Effect of exchange rate changes 33 (257) Increase/(Decrease in Cash & cash equivalents 47 (135) Total Cash & cash equivalents 3,089 3,042 (Source: Annual Reports ExxonMobil 2020). The statistics depict that the liquidity position has improved in 2019 as the increase in cash stood at $47 million as compared to its decrease of $135 million in 2018. Moreover, the total cash position value has also increased from $3,042 to $3,089 million. However, to support this assertion, the Cash ratio must be analyzed. Cash Ratio = Cash Assets/Current liabilities 2018 2019 3089/63989 = 0.05 3042/57138 = 0.05

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