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

Income Statement Data Year 12 (in 000s) Net Revenues from Footwear Sales $ 580,000 Cost of Pairs Sold 350,000 Warehouse Expenses 45,000 Marketing Expenses 90,000 Administrative Expenses 15,000 Operating Profit (Loss) 80,000 Interest Income (Expense) (20,000) Pre-tax Profit (Loss) 60,000 Income Taxes 18,000 Net Profit (Loss) $ 42,000

Based on the above income statement data and the formula for calculating the interest coverage ratio presented in the Help section for p. 5 of the Footwear Industry Report, the companys interest coverage ratio is

4.00.

3.00.

29.0.

2.10.

2.20.