Question: An analyst has compiled the following 2016 information about Suggs, Inc. (in millions). Income Statement Data: Net sales = $650, COGS = $350, SG&A expense

An analyst has compiled the following 2016 information about Suggs, Inc. (in millions).

  • Income Statement Data:
  • Net sales = $650, COGS = $350, SG&A expense = $55, Interest expense = $14, Income taxes = $76 and Net income = $155
  • Balance Sheet Data:
  • Beginning and ending total interest bearing debt = $260 and $270, respectively.

Based on the above data, Suggs' interest coverage ratio is closest to:

A.16.5x

B.12.1x

C.18.9x

D.17.5x

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