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:

Housing and Financial Crisis

A period of extreme stress in financial markets and banking systems, often leading to a downturn in the housing market and economy.

Short-run Phillips Curve

A graphical representation that shows the inverse relationship between the level of unemployment and the rate of inflation in the economy over the short-term.

Inflation

The rate at which the general level of prices for goods and services is rising, and, consequently, the purchasing power of currency is falling.

Unemployment

Occurs when individuals who are actively seeking work are unable to find employment. It is typically measured as a percentage of the labor force.