Ontario Appliances has the followingdata:

2X13

2X12

Sales

$

930

$

700

Less: Cost of Goods Sold

410

235

Gross Profit

520

465

Less: Operating Expenses

260

231

Operating Income

260

234

Less: Other Expense: Interest Expense

(30)

(30)

Income before Tax

230

204

Less: Income Tax Expense

92

82

Net Income

$

138

$

122

What is the interest coverage for Ontario Appliances in2X13? Has the interest coverage improved or not improved since2X12?

A.

12.7, unknown

B.

7.7, improved

C.

8.7, improved

D.

8.7, not improved

E.

7.7, not improved