Matthews Company Presented Below Is Selected Financial Information for Matthews

question 150

Multiple Choice

Matthews Company Presented below is selected financial information for Matthews Corporation for the most recent fiscal year ended December 31 ($ millions)
$$\begin{array} { | l | r | l | r | } \hline \text { Current assets: } & & \text { Current liabilities: } & \\\hline \hline \text { Cash and cash equivalents } & \$ 2,462 & \text { Accounts payable } & \$ 5,040 \\\hline \text { Short-term investment } & 1,406 & \text { Other current liabilities } & 2,707 \\\hline \text { Receivables, net } & 1,270 & \text { Total current liabilities } & 7,747 \\\hline \text { Merchandise inventories } & 5,184 & \text { Noncurrent liabilities } & 2,439 \\\hline \text { Other current assets } & 1,357 & \text { Shareholders' Equity } & 5,020 \\\hline \text { Total current assets } & 11,679 & \text { Total liabilities and shareholders' equity } & \$ 15,206 \\\hline \text { Noncurrent assets } & 3,527 & & \\\hline \text { Total assets } & \$ 15,206 & & \\\hline\end{array}$$ $$\begin{array} { | l | r | } \hline \text { Revenues } & \$ 40,339 \\\hline \text { Costs and Expenses } &\underline{ 38,889} \\\hline \text { Operating Income } & 1,450 \\\hline \begin{array} { l } \text { Other income/expense (including interest expense of } \\\$ 70 ) \end{array} &\underline{ ( 43 ) }\\\hline \text { Income before income tax } & 1,407 \\\hline \text { Income tax expense } &\underline{ ( 121 ) } \\\hline \text { Net income } & \underline{\$ 1,286} \\\hline\end{array}$$
Statement of Cash Flows (excerpt)
For the most recent fiscal year ended December 31
Interest paid $110
$$\begin{array} { l } \text { Previous Year's Financial Data } \\\text { Total Assets }&\underline{\$14,013} \\\text { Shareholders' Equity }&\underline{3,989}\end{array}$$ The interest coverage ratio for Matthews Corporation is ________. (Round your answer to two decimal places, X.XX.)

• A) 12.21
• B) 13.43
• C) 18.37
• D) 20.10

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Definitions:

Cash Flow

The total amount of money being transferred into and out of a business, measuring liquidity, financial flexibility, and overall financial health.

Operating Activities

Business activities related directly to the production, sale, and delivery of a company’s products and services, regarded as the core activities.

Inventory

The total amount of goods and materials held by a company for the purpose of resale or production.

Cash Paid

The total amount of cash disbursed by a company for various purposes, including operating expenses, investing activities, and financing activities.