Name: Date: Cells highlighted in green contain a drop-down list; select the appropriate account/response from the When the calculations for times interest eamed and the percentage changes in Net income are correc the cells will change to yellow. Shown here are condensed income statements for two different companies (both are organized as LLCs and pay no income taxes). Duffy Company Sales Variable expenses (80%) Income before interest Interest expense (fixed) Net income $1,000,000 800,000 200,000 60,000 $140,000 Ripken Company Sales Variable expenses (60%) Income before interest Interest expense (fixed) Net income $1,000,000 600,000 400,000 260,000 $140,000 Required: 1. Compute times interest eamed for Duffy Company & Ripken Company. (Round your answer to two decimal places.) + Choose Numerator: Income before interest & taxes $200,000 Times Interest Earned for Duffy Company Choose Denominator: Interest expense $60,000 = = = Times interest earned Times interest earned 3.33 Choose Numerator: Income before interest & taxes $400,000 Times Interest Earned for Ripken Company Choose Denominator: Interest expense $260,000 + Times interest earned Times interest earned 1.54 - = 2. What happens to each company's net income if sales increase by 30%? (Round your answers to nearest whole percent.) Net income Company Duffy Co. Ripken Co. 3. What happens to each company's net income sales decrease by 10%? (Round your answers to nearest whole percent.) Net Income Company Duffy Co Ripken Co