Year 1	Year 2	Year 3
Net sales	$100,000	$90,000	$80,000
Cost of sales	60,000	58,000	56,000
Gross margin	40,000	32,000	24,000
Selling, general, and administrative expenses	20,000	19,000	18,000
Operating income	20,000	13,000	6,000
Interest expense	3,000	4,000	5,000
Interest before tax	17,000	9,000	1,000
Tax	5,100	2,700	300
Net Income	$ 11,900	$ 6,300	$ 700

a. Calculate times-interest-earned ratio for years 13 based on the income statement presented above:

b. How is the companys times-interest-earned ratio over the three-year period? Will the company be able to pay its interest payments?