Assume a company’s Income Statement for Year 12 is as follows:
Income Statement Data | Year 12 (in 000s) |
---|---|
Net Revenue from Footwear Sales | $330,000 |
Cost of Pairs Sold | $240,000 |
Warehouse Expenses | $15,000 |
Marketing Expenses | $35,000 |
Administrative Expenses | $8,000 |
Operating Profit (Loss) | $32,000 |
Interest Income (Expenses) | ($10,000) |
Pre-tax Profit (Loss) | $22,000 |
Income Taxes | $6,600 |
Net Profit (Loss) | $15,400 |
Based on the above Income Statement data (assume interest income is zero), what will be the company’s interest coverage ratio? Chose the correct answer from the following options:
a. 3.20
b. 1.54
c. 330.0
d. 33.0
e. 2.20