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To: Don Lloyd who wrote (155)	1/28/2003 10:12:36 AM
From: TimF	Read Replies (1) \| Respond to of 445

Pls review your numbers. I think you've picked up the wrong count of counterfeit notes. Lets see. I said 1 Million notes sold and 500k notes used to pay the workers. From your post Message 18490675 "In 2002, the company realized $50M in revenue from the sale of 1M counterfeit $100 Federal Reserve Notes." So I had the sales numbers right. "Labor costs consist entirely of allowing the engravers to keep one half of the notes that they produce." Yes I think I did make a mistake. I had let them keep an amount equal to half of the notes sold. However the notes they keep themselves where also produced. To allow them to keep half of the notes including the ones they keep in the total they would have to keep 1 million notes. So the dividends would be $50 mil - ($2*2mil) or $46mil, and the GAAP wage expense would be $50mil, which would make GAAP profit of negative $2mil. ($50mil of revenue, cost of labor $50 mil, cost of goods sold $2mil) Tim