Assume a company's Income Statement for Year 12 is as follows:

Income Statement DataYear 12 (in 000s)Net Revenues from Footwear Sales$ 560,000Cost of Pairs Sold340,000Warehouse Expenses45,000Marketing Expenses85,000Administrative Expenses15,000Operating Profit (Loss)75,000Interest Income (Expense)(25,000)Pre-tax Profit (Loss)50,000Income Taxes15,000Net Profit (Loss)$ 35,000

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 companys interest coverage ratio is

A) 1.40.

B) 4.00.

C) 3.00.

D) 2.00.

E) 22.4.