The financial statements for barrington service company include the following items: 2019 2018 cash $ 42 comma 500 $ 48 comma 000 shortminusterm investments 29 comma 000 16 comma 000 net accounts receivable 53 comma 000 56 comma 000 merchandise inventory 161 comma 000 52 comma 000 total assets 535 comma 000 551 comma 000 accounts payable 124 comma 500 129 comma 000 salaries payable 17 comma 000 18 comma 000 longminusterm note payable 58 comma 000 59 comma 000 compute the current ratio for 2018. (round answer to two decimal places.)

Engberg company installs lawn sod in home yards. the company’s most recent monthly contribution format income statement follows: amount percent of sales sales $ 80,000 100% variable expenses 32,000 40% contribution margin 48,000 60% fixed expenses 38,000 net operating income $ 10,000 required: 1. compute the company’s degree of operating leverage. (round your answer to 1 decimal place.) 2. using the degree of operating leverage, estimate the impact on net operating income of a 5% increase in sales. (do not round intermediate calculations.) 3. construct a new contribution format income statement for the company assuming a 5% increase in sales.