Question
Exxon Mobil has the following extract pulled from its Cash Flow Statement: Exxon Mobil 2020 Depreciation Capital Expenditures Q1 $5.82B ($5.95B) Q2 $4.92B ($4.42B) Q3
Exxon Mobil has the following extract pulled from its Cash Flow Statement:
Exxon Mobil
2020 Depreciation Capital Expenditures
Q1 $5.82B ($5.95B)
Q2 $4.92B ($4.42B)
Q3 $4.98B ($3.30B)
Which of the following statements best reflects their current flows towards re-investment?
The results of operating in the covid crisis has increased their priority on reinvesting through capital expenditures
Seasonality of the business is making this trend foolhardy, the company continues its reinvestment path through capital expenditures
Liquidity is a large priority so slowing down the capital expenditures is one tactic to improve cash
The demand for oil and reduced revenues is helping focus the company towards their commitment to capital expenditures
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
6th Canadian edition
1118644948, 978-1118805084, 1118805089, 978-1118644942
