[solved] Assume a company's Income Statement for Year 12 is as follows:
Income Statement DataYear 12
(in 000s)
Net Revenues from Footwear Sales$ 580,000
Cost of Pairs Sold370,000
Warehouse Expenses40,000
Marketing Expenses75,000
Administrative Expenses15,000
Operating Profit (Loss)90,000
Interest Income (Expense)(15,000)
Pre-tax Profit (Loss)75,000
Income Taxes22,500
Net Profit (Loss)$ 52,500
Based on the above income statement data and the formula for calculating the interest coverage ratio presented on the Help section for p. 5 of the Footwear Industry Report, the company’s interest coverage ratio is
