Assume a company's Income Statement for Year 12 is as follows:_______.
Income Statement Data Year 12 (in 000s)
Net Revenues from Footwear Sales $ 600,000
Cost of Pairs Sold 370,000
Warehouse Expenses 55,000
Marketing Expenses 100,000
Administrative Expenses 15,000
Operating Profit (Loss) 60,000
Interest Income (Expense) (12,000)
Pre-tax Profit (Loss) 48,000
Income Taxes 14,400
Net Profit (Loss) $ 33,600
Based on the above income statement data and the formula for calculating the interest coverage ratio described in the Help section for p. 5 of the Footwear Industry Report, the company's interest coverage ratio is:_____.
a. 2.80.
b. 50.0.
c. 3.00.
d. 4.00.
e. 5.00.