Erindale Bank offers Premier Snowboards a $80,000, 5-year term loan at 3.5% annual interest. a. What will their annual loan payment be? b. Using the information from table below, how will this impact the Times Interest Earned ratio if these additional interest charges were added to existing interest expense? c. Should Erindale bank be concerned? I calculated information needed for the table

2017 2018 Sales 360,437.00 491,810.00 Cost of goods sold 154,040.00 256,886.00 Selling & administrative 32,223.00 92,058.00 Depreciation A 62,282.00 EBIT 99, 110.00 B Interest 11,056.00 C EBT 88,054.00 69,058.00 Taxes (20%) 17,610.80 D Net income 70,443.20 55,246.40 Dividends 27,621.60 E Addition to retained earnings 42,821.60 47,921.40 A- depriciation 2017= sales-(costs of goods sold+selling and administration+ EBIT) => 360437-(154040+32223+99110) then depriciation= 75064 EBIT 2018= sales-(cost of goods sold+ selling and administrative+ depriciation) then 491810-(256886+92058+62282)= EBIT => EBIT 2018= 491810-411226= 80584 interest for 2018= EBIT (B) -EBT= 80584-69058= 11526 20% taxes= EBT- net income = 69058-55246.40= 13811.6 dividends= net income- additions to retained earnings= 55246.40-47921.40= 7325