Exhibit 10 -Refer to Exhibit 10

question 3

Multiple Choice

Exhibit 10.9
Use the Information Below for the Following Problem(S)
You are provided with the following year end information for All Systems Corporation.
$\begin{array}{c}\begin{array}{lll}\text{Income Statement Data}\\\text{Sales}\\\text{Operating Income}\\\text{Depreciation}\\\text{Interest Expense}\\\text{Pretax Income}\\\text{Income Taxes}\\\text{Net Income after tax}\\\\\text{Balance Sheet Data}\\\text{Fixed Assets}\\\text{Total Assets}\\\text{Working Capital}\\\text{Total Debt}\\\text{Equity}\\\end{array}\begin{array}{lll}&&\end{array}\begin{array}{r}\\800 \\280 \\85 \\48 \\147 \\52 \\95\\\\\\810 \\1050 \\85 \\640 \\410\end{array}\end{array}$
-Refer to Exhibit 10.9.The industry norms for profit margin (PM) ,total asset turnover (TAT) ,and financial leverage are 10.9%,1.2,and 1.0,respectively.Based on this information it appears that All Systems Corporation is

• A) Better than the industry in terms of PM, but worse in terms of TAT
• B) Better than the industry for all three ratios
• C) Better than the industry for TAT and leverage, but worse for PM
• D) Worse than the industry for all three measures
• E) None of the above

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Definitions:

Contributory Plan

A type of insurance plan or pension scheme where both the employer and the employee contribute towards the cost of the benefits.

Salary

Fixed regular payment, typically expressed on an annual basis, made by an employer to an employee, especially a professional.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees.

Pregnancy Discrimination Act

A United States federal law that prohibits discrimination on the basis of pregnancy, childbirth, or related medical conditions in any aspect of employment.