Matthews Company Presented Below Is Selected Financial Information for Matthews

question 75

Multiple Choice

Matthews Company Presented below is selected financial information for Matthews Corporation for the most recent fiscal year ended December 31 ($ millions)
$$\begin{array} { | l | r | l | r | } \hline \text { Current assets: } & & \text { Current liabilities: } & \\ \hline \text { Cash and cash equivalents } & \$ 2,452 & \text { Accounts payable } & \$ 5,030 \\\hline \text { Short-term investment } & 1,416 & \text { Other current liabilities } & 2,727 \\\hline \text { Receivables, net } & 1,250 & \text { Total current liabilities } & 7,757 \\\hline \text { Merchandise inventories } & 5,144 & \text { Noncurrent liabilities } & 2,469 \\\hline \text { Other current assets } & 1,367 & \text { Shareholders' Equity } & 4,970 \\\hline \text { Total current assets } & 11,629 & \text { Total liabilities and shareholders' equity } & \$ 15,196 \\\hline \text { Noncurrent assets } & 3,567 & & \\\hline \text { Total assets } & \$ 15,196 & & \\\hline\end{array}$$ $$\begin{array} { | l | r | } \hline \text { Revenues } & \$ 40,339 \\\hline \text { Costs and Expenses } & \underline{38,889} \\\hline \text { Operating Income } & 1,450 \\\hline \begin{array} { l } \text { Other income/expense (including interest expense of } \\\$ 90 ) \end{array} &\underline{(63) }\\\hline \text { Income before income tax } & 1,387 \\\hline \text { Income tax expense } &\underline{( 141 ) } \\\hline \text { Net income } & \underline{ \$ 1,246 } \\\hline\end{array}$$ $$\begin{array} { l } \text { Previous Year's Financial Data } \\\text { Total Assets } &\underline{\$14,013}\\\text { Shareholders' Equity }&\underline{3,989}\end{array}$$
Working capital for Matthews Corporation is ________.

• A) $2,578
• B) $4,970
• C) $3,872
• D) $7,439

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Definitions:

Cash Acquisition

The purchase of one company by another using cash as the form of payment rather than stock or other means.

Shares Outstanding

The total number of shares of a company's stock that are currently owned by all its shareholders, including shares held by institutional investors and restricted shares owned by company insiders.

Market Price

The current market value at which one can buy or sell services or assets.

Merger Premium

The excess amount that an acquiring company pays over the market value of the shares of the company it is buying.