Tricky Widgets Assumptions

All values in $ unless specifed Assumptons Quarerly seasonaliy of sales C Y Q1

C Y Q2

C Y Q3

C Y Q4

20%

15%

30%

35%

# assue ont"s !it"in e ac" =uate "ave e=ual sales iespecve o) t"e nu/e o) da(s in eac" ont" Widge Sales

Units Sold Sales Go!t"

CY 2013  350,000

CY 2014 CY 2015 CY 2016 364000 407680 456602 4% 12% 12% # assue escalaon in sales ta&es e'ect instantl( )o 1 *anua(

Curren Sales ri!e and "argin#

Sale +ice pe unit .onti/uon ain aia/le aia/le .ost pe unit .onti/ ain

30$Sep$13 $ 2- 25% $ 22-4 7-50

.onti/ ain ao  conti/uon ain .ont .onti i/ / a ai in n  sale saless pi pice ceu uni nitt  tot total al va va

%ndire! Coss

ndiect .osts ndiect .ost Go!t" &e' amortsaton s!(edule

CY 2013 $ 2,400,000

CY 2014 CY 2015 CY 2016 246000 255840 26673-6 4% 4% 4% #ndiect .osts ae fed and occu ont"( iespecve o) sales$ 200,000 &ae

)

31ec13 31ec13 289e/14 289 e/14 30Ap14 30Ap 14 30*un14 30*un 14 31Au14 31Au 14 30Sep14 30Se p14 30:ov14 30:o v14 31ec14 31e c14 31a15 31a 15 30*un15 30*un 15 30Sep15 30Se p15 31ec15 31e c15

$ $ $ $ $ $ $ $ $ $ $ $

100,000 100,000 100,000 100,0 00 120,000 120,0 00 120,000 120,0 00 120,000 120,0 00 180,000 180,0 00 120,000 120,0 00 300,000 300,0 00 120,000 120,0 00 300,000 300,0 00 120,000 120,0 00 300,000 300,0 00

Cas( *e!eips +iming Sale

"on( ,1

.as" ;eceipts on Sales

"on( ,2



60%

25%

-!$13

.o/$13

&e!$13

30%

60%

10%

.as" ;eceipts on otal @ia/ilies

-pening

$ 36,000 $ 1,200,000 $ 1,000,000 $ 2,236,000 %neres

$ 700,000 $ 4,000,000 $ 4,700,000

7-0% *Sim *Simpl ple e int inter eres estt p.a p.a wit with h int inter eres estt pai paid d at at m

&epre!iaton and Cape epeciaon

$ 20,000 pe ont" #:o capital ependitue is )oecast ove t"e net 3 (eas

+aaton >ic&( idets "as su/stanal "istoic ta losses- Assue t"at no ta !ill /e pa(a/le )o t"e peiod o) anal(sisB1

B1

ore!as +oal !os

$

684,825 $

684,825

Sales

$

6,767 $

6,767

.ounte Stat o) +eiod ?nd o) +eiod

1 1