The following information is computed from Fast Food Chain's annual report for 2012. 2011 $ 2,210,735 26,000 Current liabilities Deferred federal income taxes Mortgage notes payable Total Liabilities Stockholders' equity Total Liabilities and Stockholders' Equity 2012 $3,168,123 160,000 456,000 _3.784,123 10,201.958 $13,986,081 2.236,735 8.900,933 SLI.137.668 EBIT Interest expense Income tax expense Net income 1,241,884 (216,936) (400,000) $ 624.948 1.144,540 (39,456) (300,000) 805,084 Note: Operating lease rental charges were $300,000 in 2012 and $150,000 in 2011. Capitalized interest totaled $30,000 in 2012 and $20,000 in 2011. Based on the above data for both years, and the ratio analysis below, comment on the firm's long-term borrowing ability. Comment on each ratio and on the ratios taken as a group. Use specific items from the above statement in explaining your analysis and comment on the relationship between the ratios. 2012 2011 1. times interest earned 2. fixed charge coverage 3. debt ratio 4. debt/equity ratio 5.03 3.87 27.1% 37.1% 19.25 10.91 20.1% 25.1%