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Problem 9-5A (Static) Computing and analyzing times interest earned LO A1 [The following information applies to the questions displayed below.] Shown here are condensed income
Problem 9-5A (Static) Computing and analyzing times interest earned LO A1 [The following information applies to the questions displayed below.] Shown here are condensed income statements for two different companies (assume no income taxes) 2. What happens to each company's net income if sales increase by 30% ? (Round your answers to nearest whole percent.) 3. What happens to each company's net income if sales increase by 50% ? (Round your answers to nearest whole percent.) 4. What happens to each company's net income if sales decrease by 10% ? (Round your answers to nearest whole percent.) \begin{tabular}{|l|l|l|l|} \hline \multicolumn{1}{|c|}{ Company } & \multicolumn{3}{|c|}{ Net Income } \\ \hline Miller Company & & & % \\ \hline Weaver Company & & & % \\ \hline \end{tabular} 5. What happens to each company's net income if sales decrease by 40% ? (Round your answers to nearest whole percent.) 6. Which company would have a greater ability to pay interest expense if sales were to decrease? Miller Company Weaver Company
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