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

question 22

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

$\begin{array}{c}\begin{array}{lll}\text{Assets}\\\text{Cash}\\\text{Accounts receivable}\\\text{Inventory}\\\text{Total current assets}\\\text{Net fixed assets}\\\\\\\\\\\text{Total assets}\\\end{array}\begin{array}{r}\\\$ \quad 69 \\233 \\348 \\\hline 650 \\886 \\\hline\\\\\\\\\$ 1536\end{array}\begin{array}{lll}\text{Liabilities}\\\text{Notes payable}\\\text{Accounts payable}\\\text{Accruals}\\\text{Total current liabilities}\\\text{Long term debt}\\\text{Common stock (\$1.50 par) }\\\text{Paid in surplus}\\\text{Retained earnings}\\\text{Total liabilities and}\\\text{Stockholders' equity}\\\end{array}\begin{array}{r}\\\$ \quad 231 \\146 \\31 \\\hline 408 \\318 \\111 \\190 \\509 \\\hline\\\$1536\end{array}\end{array}$
-Refer to Exhibit 10.2.What was Star's current ratio at year-end 2004?

Recognize the capacity required to enter into legally binding contracts.

Understand defenses to the enforcement of a contract, including lack of genuine assent and lack of capacity.

Differentiate between valid, void, voidable, and unenforceable contracts.

Grasp the concepts related to the communication and acceptance of offers, including the mailbox rule.

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Definitions:

Machiavellianism

A personality trait that involves manipulation and exploitation of others, a cynical disregard for morality, and a focus on self-interest and deception.

Mutual Goals

Objectives shared by all parties in a negotiation or collaborative effort, fostering cooperation and a sense of common purpose.

Distributive Bargaining

A negotiation process focused on dividing a limited amount of resources, where one party's gain is typically another's loss, echoing the principles of distributive negotiations but emphasizing the competitive aspect.

Extraversion

A personality trait characterized by outgoingness, high energy, and engagement in social situations.