Record the following journal entries for Taylor Company for the month of March: Borrowed $4,500 from Local Bank and Trust Investors contributed $10,000 in cash for shares of stock Bought inventory costing $2,000 on credit Sold inventory that originally cost $400 for $600 on credit Purchased a new piece of equipment for $500 cash Collected $600 in cash from sale of inventory in (d) above Paid for inventory purchased in (c) above Paid $1,200 in cash for an insurance policy that covers the next year Employees earned $3,000 during the month but have not yet been paid Paid employees $2,900 for wages earned and recorded during February

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.