Question - Assume a company's Income Statement for Year 12 is as follows:
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Income Statement Data
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Year 12
(in 000s)
|
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Net Revenues from Footwear Sales
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$ 300,000
|
|
Cost of Pairs Sold
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190,000
|
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Warehouse Expenses
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15,000
|
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Marketing Expenses
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40,000
|
|
Administrative Expenses
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8,000
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Operating Profit (Loss)
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47,000
|
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Interest Income (expenses)
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(10,000)
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Pre-tax Profit (Loss)
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37,000
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Income Taxes
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11,100
|
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Net Profit (Loss)
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$ 25,900
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Based on the above income statement data (assume interest income is zero), the company's interest coverage ratio is
a) 30.0.
b) 4.70.
c) 2.59.
d) 3.70