Last Year, Nemo's Fish 'N Chips Recorded the Following Financial

Multiple Choice

Last year, Nemo's Fish 'n Chips recorded the following financial data: sales = $85,000; cost of goods sold = $45,000; selling and administrative expenses = $25,000; depreciation and amortization = $7,000; and interest expense = $12,000. The tax rate was 30%. Find Nemo's interest coverage for last year.

A) -0.29 times
B) 0.66 times
C) 0.86 times
D) 1.25 times