Exhibit 10 The Zeco Company's Industry Averages Are as Follows:
Net Profit

question 32

Multiple Choice

Exhibit 10.8
Use the Information Below for the Following Problem(S)
Zeco Company has the following financial statements for year ending 12/31/2008.
$\begin{array}{c}\begin{array}{lll}Sales\\\text{Cost of Goods Sold}\\\text{Gross Profit}\\\text{Depreciation}\\\text{Operating Expenses}\\\text{Administration Exp.}\\\text{Operating Profit 15,000}\\\text{Interest Expense}\\\\\text{Profit Before Taxes}\\Taxes\\\\\text{Net Income}\\Dividends\\\end{array}\begin{array}{lll}&&&\end{array}\begin{array}{lll}1,000,000\\750,000 \\\hline 250,000 \\100,000 \\70,000 \\65,000\\\\\\8,000\\\hline7,000\\\\2,800\\\hline4,200\\3,200\end{array}\end{array}$
$\begin{array}{c}\begin{array}{lll}\text{Assets}\\\text{Cash}\\\text{Accounts Receivable}\\\text{Inventory}\\\text{Total Current Assets}\\\text{Net Fixed Assets}\\\text{Total Assets}\\\\\\\end{array}\begin{array}{lll}\\50,000 \\250,000 \\325,000 \\\hline 825,000 \\450,000 \\\hline 1,275,000\\\\\\\end{array}\begin{array}{lll}\text{Liabilities}\\\text{Notes Payable}\\\text{Accounts Payable}\\\text{Total Current Liab.}\\\text{Long Term Debt}\\\text{Common Stock}\\\text{Retained Earnings}\\\text{Total Liab. \& Earnings}\\\\\end{array}\begin{array}{lll}250,000 \\350,000 \\\hline 800,000 \\225,000 \\200,000 \\50,000 \\\hline 1,275,000\end{array}\end{array}$
The Zeco Company's industry averages are as follows:
Net Profit Margin = 4.5%; Total Asset Turnover = 0.8; Total Assets/Equity = 1.5
-Refer to Exhibit 10.8.Calculate Zeco Company's Net Profit Margin.

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Definitions:

Salary

A fixed amount of money paid to an employee, usually on a monthly or annual basis, in exchange for their work.

Compensable Factors

Characteristics of a job that are used to determine its value and appropriate compensation, such as skill level and responsibility.

Point System

A form of job evaluation that assesses the relative importance of the job’s key factors in order to arrive at the relative worth of jobs.

Compensation Information

Data and details regarding the pay rates, bonuses, benefits, and other forms of remuneration provided to employees for their services.