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Exhibit 10 STAR CORPORATION BALANCE SHEET
FISCAL YEAR ENDING 12/31/2004
(DOLIARS IN

question 23

Multiple Choice

Exhibit 10.2
Use the Information Below for the Following Problem(S)
STAR CORPORATION INCOME STATEMENT
FISCAL YEAR ENDING 12/31/2004
(DOLIARS IN THOUSANDS)
NetSalesCostofGoodsSoldGrossProfitMarginDepreciationOperatingExpenseAdministrativeExpenseOperatingProfitInterestProfitBeforeTaxTaxes$107570636930109129101297221$51\begin{array}{c}\begin{array}{lll}Net Sales\\Cost of Goods Sold\\Gross Profit Margin\\Depreciation\\Operating Expense\\Administrative Expense\\Operating Profit\\Interest\\Profit Before Tax\\Taxes\\\end{array}\begin{array}{lll}&&&\end{array}\begin{array}{r}\$ 1075 \\706 \\\hline 369 \\30 \\109 \\129 \\\hline 101 \\29 \\\hline 72 \\21 \\\hline \$ 51\\\end{array}\end{array}
STAR CORPORATION BALANCE SHEET
FISCAL YEAR ENDING 12/31/2004
(DOLIARS IN THOUSANDS)

AssetsCashAccounts receivableInventoryTotal current assetsNet fixed assetsTotal assets$69233348650886$1536LiabilitiesNotes payableAccounts payableAccrualsTotal current liabilitiesLong term debtCommon stock ($1.50 par) Paid in surplusRetained earningsTotal liabilities andStockholders’ equity$23114631408318111190509$1536\begin{array}{c}\begin{array}{lll}\text{Assets}\\\text{Cash}\\\text{Accounts receivable}\\\text{Inventory}\\\text{Total current assets}\\\text{Net fixed assets}\\\\\\\\\\\text{Total assets}\\\end{array}\begin{array}{r}\\\$ \quad 69 \\233 \\348 \\\hline 650 \\886 \\\hline\\\\\\\\\$ 1536\end{array}\begin{array}{lll}\text{Liabilities}\\\text{Notes payable}\\\text{Accounts payable}\\\text{Accruals}\\\text{Total current liabilities}\\\text{Long term debt}\\\text{Common stock (\$1.50 par) }\\\text{Paid in surplus}\\\text{Retained earnings}\\\text{Total liabilities and}\\\text{Stockholders' equity}\\\end{array}\begin{array}{r}\\\$ \quad 231 \\146 \\31 \\\hline 408 \\318 \\111 \\190 \\509 \\\hline\\\$1536\end{array}\end{array}
-Refer to Exhibit 10.2.What was Star's net profit margin?

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Definitions:

Organizational Climate

The underlying atmosphere or environment within an organization, shaped by its members' attitudes, behaviors, and standards.

Coercive Power

A form of authority or influence that is based on the ability to punish or impose penalties.

Power

The ability or capacity to influence or control the behavior of others, the course of events, or access to resources.

Authority

The legal or formal right to make decisions, direct others, and enforce obedience within a certain area or domain.

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