The Karson Transport Company currently has net operating income of $$496,000$ and pays interest expense of $$194,000.$ The company plans to borrow $$1\mathrm{.}02$ million on which the firm will pay $11$ percent interest. The borrowed money will be used to finance an investment that is expected to increase the$$ firm's net operating income by $$398,000$ a year.

a$.$ What is$$ Karson's times interest earned ratio before the loan is taken out and the investment is$$ made?

b$.$ What effect will the loan and the investment have on the$$ firm's times interest earned$$ ratio?