In a recent filing with the Securities and Exchange Commission, Exxon (ticker: XOM) confirmed that it will take a write-down of between $18 billion and $20 billion in the 4th quarter of their current fiscal year. This question has a number of parts - please complete in Excel and upload file. Organization, clarity and depth of presentation is critical. Please make sure everything is labeled to facilitate understanding.

Part 1 -- Assume a $20 billion dollar write off and base your computations on the 3rd quarter 10 Q and assume a $2 billion dollar operating loss excluding the write down. What would be the $ and % reduction in shareholders equity? Compute debt to equity, leverage ratio and other debt ratios -- what do the mean ? How will this impact their future?

Part 2 --- What % of their market capitalization does the $20 billion represent?

Part 3 -- The write off itself - explain what it was, why did they need to it, how did they compute it -- what are the possible underlying assumptions? Once you identified that - what is the statement telling you about where Exxon sees the future?

Part 4 --- What % of the asset category did they write off ? How much of the asset class remains? What is the risk with those remaining assets?