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

question 24

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 the sustainable growth rate for Zeco Company.

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Definitions:

Elevated Blood Pressure

A condition where the force of the blood against the artery walls is higher than normal, which can lead to health problems such as heart disease.

Alternative Therapies

Treatments that are used instead of standard medical treatments. These can include herbal remedies, acupuncture, and massage therapy.

Chronic Headaches

Recurrent headaches occurring over a period of time, often causing significant discomfort or disability.

Acupuncture

A traditional Chinese medical practice using fine needles inserted at specific points on the body to relieve pain or to treat various health conditions.