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

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 the financial leverage multiplier used in the Star system?

A) 0.852
B) 1.896
C) 1.996
D) 2.054
E) 2.998