Following Is Financial Statement Information for Rogex Corporation: Net Sales

Multiple Choice

Following is financial statement information for Rogex Corporation: net sales = $2,768; cost of goods sold = $1,210; depreciation = $360; interest expense = $160; taxes = $312; addition to retained earnings = $508; and dividends paid = $218. The interest coverage ratio for Rogex is:

A) 6.5 times
B) 4.5 times
C) 9.7 times
D) 1.5 times