Naive realism anthropology

Q1-4

ASSUMPTIONS

Sales Price per Unit $49.99

Gross Margin = (Revenues - cost of goods sold) / Revenues 25%

Depreciation & amortization as a % of capital expenditures 25%

Tax Rate 35%

Year 2014 2015 2016 2017 2018

Units Sold 200,000

Growth Rate Of Unit Sold 5% 13% 15% 9%

Operating Expenses as % of Sales (2014 Only) 10%

Operating Expense Growth Rate 4% 4% 4% 4%

Capital Expenditures $1,750,000 $1,775,000 $1,800,000 $1,825,000 $1,850,000

Interest Expense $0 $10,000 $10,000 $10,000 $12,500

Income Statement

Year 2014 2015 2016 2017 2018

Units Sold

Price per Unit

Revenue

Cost of goods sold

Gross Profit (defined as Revenue - COGS)

Operating Expenses

Earnings Before Interest Taxes Depreciation And Amortization (Ebitda)

EBITDA / Revenue (%)

Depreciation and Amortization

Operating Income (defined as EBITDA - Depreciation and Amortization)

Interest Expense

Pre-tax Net Income (Operating Income - Interest Expense)

Income Taxes

Net Income (Pret-tax Net Income - Income Taxes)

Q5-19

Date Invoice Number Item Code Sales Rep Manager Ticket Price Price Per Unit Discount Given Sales Price Per Unit Cost per Unit Quantity Postal Code

1-Jan-14 1 9 Sarah Smith Fred Rubble 37.95 0.00% 37.95 22.85 18 94023

1-Jan-14 2 39 Amy Adams Fred Rubble 19.95 15.00% 16.96 7.25 12 93434

1-Jan-14 3 38 John Mack Fred Rubble 29.95 0.00% 29.95 12.96 36 93620

1-Jan-14 4 5 Sarah Smith Fred Rubble 58.95 0.00% 58.95 16.78 46 93589

1-Jan-14 5 26 Sarah Smith Fred Rubble 7.95 0.00% 7.95 2.54 18 93992

1-Jan-14 5 14 Sarah Smith Fred Rubble 31.95 0.00% 31.95 18.25 54 93992

1-Jan-14 6 15 John Mack Fred Rubble 30.95 0.00% 30.95 16.57 3 93527

1-Jan-14 7 10 Sarah Smith Fred Rubble 68.95 15.00% 58.61 38.69 16 93403

1-Jan-14 8 6 John Mack Fred Rubble 23.95 35.00% 15.57 10.76 36 93620

1-Jan-14 9 10 Sarah Smith Fred Rubble 68.95 15.00% 58.61 38.69 6 93775

1-Jan-14 10 44 Amy Adams Fred Rubble 41.95 0.00% 41.95 23.05 10 93434

1-Jan-14 10 25 Amy Adams Fred Rubble 3.95 0.00% 3.95 1.14 18 93434

1-Jan-14 10 28 Amy Adams Fred Rubble 43.95 0.00% 43.95 16.23 6 93434

1-Jan-14 11 38 Sarah Smith Fred Rubble 29.95 0.00% 29.95 12.96 28 93372

1-Jan-14 12 44 Amy Adams Fred Rubble 41.95 0.00% 41.95 23.05 3 93465

1-Jan-14 12 49 Amy Adams Fred Rubble 27.95 0.00% 27.95 12.86 4 93465

1-Jan-14 12 12 Amy Adams Fred Rubble 29.95 0.00% 29.95 13.98 28 93465

1-Jan-14 13 22 Sarah Smith Fred Rubble 5.95 0.00% 5.95 2.40 19 93651

1-Jan-14 14 2 John Mack Fred Rubble 62.95 0.00% 62.95 29.45 10 93620

1-Jan-14 15 40 Amy Adams Fred Rubble 21.95 0.00% 21.95 10.70 42 93992

1-Jan-14 16 50 Sarah Smith Fred Rubble 46.95 0.00% 46.95 26.32 9 93527

1-Jan-14 17 18 Amy Adams Fred Rubble 52.95 0.00% 52.95 25.49 52 93713

1-Jan-14 18 50 Sarah Smith Fred Rubble 46.95 0.00% 46.95 26.32 25 93868

1-Jan-14 19 15 John Mack Fred Rubble 30.95 0.00% 30.95 16.57 4 93930

1-Jan-14 20 44 Amy Adams Fred Rubble 41.95 0.00% 41.95 23.05 4 94023

1-Jan-14 21 41 John Mack Fred Rubble 38.95 0.00% 38.95 20.97 4 93496

1-Jan-14 21 46 John Mack Fred Rubble 31.95 0.00% 31.95 9.58 40 93496

2-Jan-14 22 30 Oliver Winslow Tim King 3.95 0.00% 3.95 1.06 6 93496

2-Jan-14 23 41 Rob Stewart Tim King 38.95 0.00% 38.95 20.97 3 93682

2-Jan-14 23 9 Rob Stewart Tim King 37.95 0.00% 37.95 22.85 6 93682

2-Jan-14 24 38 Oliver Winslow Tim King 29.95 0.00% 29.95 12.96 22 93589

2-Jan-14 24 39 Oliver Winslow Tim King 19.95 0.00% 19.95 7.25 36 93589

2-Jan-14 24 5 Oliver Winslow Tim King 58.95 0.00% 58.95 16.78 27 93589

2-Jan-14 25 9 Rob Stewart Tim King 37.95 0.00% 37.95 22.85 13 93403

2-Jan-14 26 9 Oliver Winslow Tim King 37.95 0.00% 37.95 22.85 6 93310

2-Jan-14 27 1 Rob Stewart Tim King 47.95 0.00% 47.95 28.67 3 93868

3-Jan-14 28 27 Amy Adams Tim King 3.95 15.00% 3.36 1.22 4 94023

3-Jan-14 29 20 Sarah Smith Tim King 29.95 0.00% 29.95 13.14 31 93713

3-Jan-14 30 4 Amy Adams Tim King 27.95 0.00% 27.95 12.99 12 93682

3-Jan-14 30 39 Amy Adams Tim King 19.95 0.00% 19.95 7.25 27 93682

3-Jan-14 31 47 Amy Adams Tim King 6.95 0.00% 6.95 2.15 33 93589

3-Jan-14 32 35 Sarah Smith Tim King 29.95 0.00% 29.95 13.25 30 93775

3-Jan-14 32 40 Sarah Smith Tim King 21.95 0.00% 21.95 10.70 31 93775

3-Jan-14 32 29 Sarah Smith Tim King 13.95 0.00% 13.95 5.52 12 93775

3-Jan-14 33 4 Amy Adams Tim King 27.95 0.00% 27.95 12.99 12 93868

3-Jan-14 34 7 Sarah Smith Tim King 10.95 15.00% 9.31 5.25 21 94023

3-Jan-14 35 30 Sarah Smith Tim King 3.95 0.00% 3.95 1.06 27 94023

3-Jan-14 35 28 Sarah Smith Tim King 43.95 0.00% 43.95 16.23 3 94023

3-Jan-14 36 49 Amy Adams Tim King 27.95 0.00% 27.95 12.86 4 93465

3-Jan-14 37 6 Sarah Smith Tim King 23.95 0.00% 23.95 10.76 16 93310

3-Jan-14 38 49 Sarah Smith Tim King 27.95 0.00% 27.95 12.86 6 93899

3-Jan-14 39 32 Amy Adams Tim King 22.95 0.00% 22.95 10.50 21 93744

3-Jan-14 39 24 Amy Adams Tim King 3.95 0.00% 3.95 1.07 34 93744

4-Jan-14 40 10 Rob Stewart Tim King 68.95 0.00% 68.95 38.69 25 93682

4-Jan-14 41 19 John Mack Tim King 19.95 0.00% 19.95 7.48 16 93930

4-Jan-14 42 27 Rob Stewart Tim King 3.95 0.00% 3.95 1.22 31 93961

4-Jan-14 43 39 John Mack Tim King 19.95 0.00% 19.95 7.25 25 93527

4-Jan-14 44 24 John Mack Tim King 3.95 0.00% 3.95 1.07 10 93558

4-Jan-14 44 40 John Mack Tim King 21.95 0.00% 21.95 10.70 25 93558

4-Jan-14 44 50 John Mack Tim King 46.95 0.00% 46.95 26.32 9 93558

4-Jan-14 45 42 Rob Stewart Tim King 14.95 0.00% 14.95 4.04 12 93527

4-Jan-14 46 2 John Mack Tim King 62.95 0.00% 62.95 29.45 9 93403

5-Jan-14 47 1 Amy Adams Tim King 47.95 0.00% 47.95 28.67 6 93775

5-Jan-14 47 33 Amy Adams Tim King 40.95 0.00% 40.95 16.07 13 93775

5-Jan-14 48 8 Amy Adams Tim King 51.95 0.00% 51.95 25.24 15 93372

5-Jan-14 48 16 Amy Adams Tim King 52.95 0.00% 52.95 24.65 43 93372

5-Jan-14 49 16 John Mack Tim King 52.95 0.00% 52.95 24.65 55 93403

5-Jan-14 50 48 Amy Adams Tim King 66.95 0.00% 66.95 27.82 4 93465

5-Jan-14 50 5 Amy Adams Tim King 58.95 0.00% 58.95 16.78 39 93465

5-Jan-14 51 3 John Mack Tim King 76.95 0.00% 76.95 39.58 3 93961

5-Jan-14 52 20 Amy Adams Tim King 29.95 0.00% 29.95 13.14 12 93868

5-Jan-14 53 39 John Mack Tim King 19.95 0.00% 19.95 7.25 43 93899

6-Jan-14 54 25 Oliver Winslow Fred Rubble 3.95 0.00% 3.95 1.14 30 93372

6-Jan-14 54 38 Oliver Winslow Fred Rubble 29.95 15.00% 25.46 12.96 16 93372

6-Jan-14 54 23 Oliver Winslow Fred Rubble 30.95 0.00% 30.95 17.52 54 93372

6-Jan-14 55 5 Rob Stewart Fred Rubble 58.95 0.00% 58.95 16.78 24 93744

6-Jan-14 56 17 Oliver Winslow Fred Rubble 57.95 0.00% 57.95 27.37 30 93620

6-Jan-14 57 5 Rob Stewart Fred Rubble 58.95 15.00% 50.11 16.78 33 93713

6-Jan-14 58 36 Oliver Winslow Fred Rubble 27.95 0.00% 27.95 10.10 4 93558

7-Jan-14 59 18 Sarah Smith Fred Rubble 52.95 0.00% 52.95 25.49 28 93868

7-Jan-14 60 9 Oliver Winslow Fred Rubble 37.95 0.00% 37.95 22.85 19 93775

7-Jan-14 61 34 Sarah Smith Fred Rubble 3.95 0.00% 3.95 1.19 3 93496

7-Jan-14 62 37 Rob Stewart Fred Rubble 27.95 0.00% 27.95 12.20 3 93372

8-Jan-14 63 34 Sarah Smith Fred Rubble 3.95 0.00% 3.95 1.19 45 93744

8-Jan-14 64 40 John Mack Fred Rubble 21.95 0.00% 21.95 10.70 18 93930

8-Jan-14 65 42 John Mack Fred Rubble 14.95 0.00% 14.95 4.04 18 94023

8-Jan-14 66 32 Amy Adams Fred Rubble 22.95 0.00% 22.95 10.50 36 93775

8-Jan-14 66 24 Amy Adams Fred Rubble 3.95 15.00% 3.36 1.07 18 93775

8-Jan-14 66 33 Amy Adams Fred Rubble 40.95 0.00% 40.95 16.07 10 93775

8-Jan-14 67 44 Amy Adams Fred Rubble 41.95 15.00% 35.66 23.05 10 93434

8-Jan-14 68 18 John Mack Fred Rubble 52.95 0.00% 52.95 25.49 48 93403

8-Jan-14 68 13 John Mack Fred Rubble 34.95 0.00% 34.95 18.10 7 93403

8-Jan-14 69 16 Amy Adams Fred Rubble 52.95 0.00% 52.95 24.65 36 93682

8-Jan-14 70 35 Amy Adams Fred Rubble 29.95 0.00% 29.95 13.25 10 93651

8-Jan-14 71 25 John Mack Fred Rubble 3.95 0.00% 3.95 1.14 9 93527

8-Jan-14 72 37 John Mack Fred Rubble 27.95 0.00% 27.95 12.20 4 93930

8-Jan-14 73 42 Amy Adams Fred Rubble 14.95 15.00% 12.71 4.04 13 93992

8-Jan-14 74 28 Sarah Smith Fred Rubble 43.95 0.00% 43.95 16.23 6 93713

8-Jan-14 74 22 Sarah Smith Fred Rubble 5.95 0.00% 5.95 2.40 16 93713

8-Jan-14 74 41 Sarah Smith Fred Rubble 38.95 15.00% 33.11 20.97 4 93713

8-Jan-14 75 14 John Mack Fred Rubble 31.95 15.00% 27.16 18.25 19 93496

8-Jan-14 76 26 Amy Adams Fred Rubble 7.95 15.00% 6.76 2.54 3 93837

8-Jan-14 77 12 Sarah Smith Fred Rubble 29.95 15.00% 25.46 13.98 25 94023

8-Jan-14 78 13 John Mack Fred Rubble 34.95 0.00% 34.95 18.10 3 93310

8-Jan-14 79 23 Amy Adams Fred Rubble 30.95 0.00% 30.95 17.52 22 93465

8-Jan-14 80 1 Sarah Smith Fred Rubble 47.95 0.00% 47.95 28.67 15 93496

9-Jan-14 81 14 Oliver Winslow Tim King 31.95 0.00% 31.95 18.25 51 93372

9-Jan-14 82 31 Rob Stewart Tim King 25.95 0.00% 25.95 12.50 3 93527

9-Jan-14 83 11 Oliver Winslow Tim King 50.95 0.00% 50.95 21.42 4 93930

9-Jan-14 84 25 Rob Stewart Tim King 3.95 0.00% 3.95 1.14 16 93930

9-Jan-14 84 49 Rob Stewart Tim King 27.95 0.00% 27.95 12.86 6 93930

10-Jan-14 85 18 Amy Adams Tim King 52.95 0.00% 52.95 25.49 48 93651

10-Jan-14 85 21 Amy Adams Tim King 3.95 0.00% 3.95 1.29 4 93651

10-Jan-14 86 36 Sarah Smith Tim King 27.95 0.00% 27.95 10.10 6 93744

10-Jan-14 87 43 Sarah Smith Tim King 41.95 0.00% 41.95 25.48 16 93806

10-Jan-14 87 43 Sarah Smith Tim King 41.95 0.00% 41.95 25.48 33 93806

10-Jan-14 87 20 Sarah Smith Tim King 29.95 0.00% 29.95 13.14 19 93806

10-Jan-14 88 26 Sarah Smith Tim King 7.95 0.00% 7.95 2.54 13 93837

10-Jan-14 89 12 Sarah Smith Tim King 29.95 0.00% 29.95 13.98 21 93992

10-Jan-14 89 50 Sarah Smith Tim King 46.95 15.00% 39.91 26.32 3 93992

11-Jan-14 90 32 Rob Stewart Tim King 22.95 0.00% 22.95 10.50 43 93837

11-Jan-14 91 10 John Mack Tim King 68.95 0.00% 68.95 38.69 13 93372

11-Jan-14 91 27 John Mack Tim King 3.95 0.00% 3.95 1.22 51 93372

12-Jan-14 92 9 John Mack Tim King 37.95 0.00% 37.95 22.85 15 93589

12-Jan-14 92 4 John Mack Tim King 27.95 0.00% 27.95 12.99 12 93589

12-Jan-14 92 31 John Mack Tim King 25.95 15.00% 22.06 12.50 9 93589

12-Jan-14 92 43 John Mack Tim King 41.95 0.00% 41.95 25.48 7 93589

12-Jan-14 93 26 John Mack Tim King 7.95 0.00% 7.95 2.54 15 93651

12-Jan-14 94 38 John Mack Tim King 29.95 0.00% 29.95 12.96 12 93434

12-Jan-14 94 45 John Mack Tim King 58.95 0.00% 58.95 33.19 37 93434

12-Jan-14 94 47 John Mack Tim King 6.95 0.00% 6.95 2.15 25 93434

12-Jan-14 94 45 John Mack Tim King 58.95 0.00% 58.95 33.19 36 93434

12-Jan-14 94 29 John Mack Tim King 13.95 0.00% 13.95 5.52 42 93434

12-Jan-14 94 34 John Mack Tim King 3.95 0.00% 3.95 1.19 33 93434

12-Jan-14 94 3 John Mack Tim King 76.95 0.00% 76.95 39.58 3 93434

12-Jan-14 95 36 Amy Adams Tim King 27.95 15.00% 23.76 10.10 13 93403

12-Jan-14 96 9 Amy Adams Tim King 37.95 0.00% 37.95 22.85 10 93527

12-Jan-14 96 46 Amy Adams Tim King 31.95 15.00% 27.16 9.58 31 93527

12-Jan-14 97 32 John Mack Tim King 22.95 0.00% 22.95 10.50 4 93403

12-Jan-14 98 8 Amy Adams Tim King 51.95 0.00% 51.95 25.24 36 93744

12-Jan-14 99 39 John Mack Tim King 19.95 0.00% 19.95 7.25 19 93682

12-Jan-14 100 11 Amy Adams Tim King 50.95 0.00% 50.95 21.42 7 93651

12-Jan-14 100 48 Amy Adams Tim King 66.95 0.00% 66.95 27.82 3 93651

12-Jan-14 100 47 Amy Adams Tim King 6.95 0.00% 6.95 2.15 37 93651

12-Jan-14 101 19 John Mack Tim King 19.95 0.00% 19.95 7.48 16 93434

12-Jan-14 102 47 Amy Adams Tim King 6.95 0.00% 6.95 2.15 25 93372

12-Jan-14 103 27 John Mack Tim King 3.95 35.00% 2.57 1.22 10 93496

12-Jan-14 103 30 John Mack Tim King 3.95 0.00% 3.95 1.06 4 93496

12-Jan-14 103 21 John Mack Tim King 3.95 0.00% 3.95 1.29 16 93496

12-Jan-14 104 22 Amy Adams Tim King 5.95 15.00% 5.06 2.40 10 93837