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