Matthews Company Presented Below Is Selected Financial Information for Matthews

question 50

Multiple Choice

Matthews Company Presented below is selected financial information for Matthews Corporation for the most recent fiscal year ended December 31 ($ millions)
$$\begin{array} { | l | r | l | r | } \hline \text { Current assets: } & & \text { Current liabilities: } & \\\hline \text { Cash and cash equivalents } & \$ 2,432 & \text { Accounts payable } & \$ 5,030 \\\hline \text { Short-term investment } & 1,456 & \text { Other current liabilities } & 2,767 \\\hline \text { Receivables, net } & 1,310 & \text { Total current liabilities } & 7,797 \\\hline \text { Merchandise inventories } & 5,174 & \text { Noncurrent liabilities } & 2,489 \\\hline \text { Other current assets } & 1,407 & \text { Shareholders' Equity } & 5,020 \\\hline \text { Total current assets } & 11,779 & \text { Total liabilities and shareholders' equity } & \$ 15,306 \\\hline \text { Noncurrent assets } & 3,527 & & \\\hline \text { Total assets } & \$ 15,306 & & \\\hline\end{array}$$ $$\begin{array} { | l | r | } \hline \text { Revenues } & \$ 40,339 \\\hline \text { Costs and Expenses } &\underline{ 38,889} \\\hline \text { Operating Income } & 1,450 \\\hline \begin{array} { l } \text { Other income/expense (including interest expense of } \\\$ 90 ) \end{array} &\underline{ ( 63 ) } \\\hline \text { Income before income tax } & 1,387 \\\hline \text { Income tax expense } &\underline{ ( 141 ) } \\\hline \text { Net income } &\underline{ \$ 1,246} \\\hline\end{array}$$ $$\begin{array} { l } \text { Previous Year's Financial Data } \\\text { Total Assets } &\$14,013\\\text { Shareholders' Equity }&3,989\end{array}$$
The debt to equity ratio for Matthews Corporation is ________. (Round your answer to two decimal places, X.XX.)

• A) 0.50
• B) 1.00
• C) 1.55
• D) 2.05

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Definitions:

Life Cycle Cost

The total cost of ownership of a product or system over its entire life, including initial purchase, operation, maintenance, and disposal costs.

Operating Cost

The total amount of money required to run a business, project, or device, excluding capital expenditures.

External Cost

Costs of a transaction that affect people other than the buyer or seller, which are not reflected in market prices.

Commercial Energy

Energy derived from commercial sources such as fossil fuels, intended primarily for businesses and manufacturing.