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

---

Definitions:

Dissemination Costs

Expenses associated with the distribution or sharing of information to the public or specific target audiences.

Collection

An effort to accumulate amounts due from debtors, or the process of recovering financial obligations.

Conceptual Framework

A system of ideas and objectives that guides the development of standards and practices in financial reporting and accounting.

Financial Reporting

Financial reporting involves the disclosure of financial information to various stakeholders about the financial performance and position of an organization over a specific period of time.