The following information is computed from Katy Inc.'s annual report for 2018.

	2018	2017
Current assets	$ 2,731,020	$ 2,364,916
Property and equipment, net	10,960,286	8,516,833
Intangible assets, at cost less applicable
amortization	294,775	255,919
	$13,986,081	$11,137,668
Current liabilities	$ 3,168,123	$ 2,210,735
Deferred federal income taxes	160,000	26,000
Mortgage note payable	456,000	-
Stockholders' equity	10,201,958	8,900,933
	$13,986,081	$11,137,668
Net sales	$33,410,599	$25,804,285
Cost of goods sold	(30,168,715)	(23,159,745)
Selling and administrative expense	(2,000,000)	(1,500,000)
Interest expense	(216,936)	(39,456)
Income tax expense	(400,000 )	(300,000 )
Net income	$ 624,948	$ 805,084

Note: One-third of the operating lease rental charge was $100,000 in 2018 and $50,000 in 2017. Capitalized interest totaled $30,000 in 2018 and $20,000 in 2017. Required:

a.	Based on the above data for both years, compute:
	1.	times interest earned
	2.	debt ratio
	3.	debt/equity ratio
b.	Comment on the firm's long-term borrowing ability based on the analysis.