Question
In: Finance
Consider the following pro forma for the next 4 questions Potential Gross Income 100,000 sq. ft...
|
Consider the following pro forma for the next 4 questions |
||
|
Potential Gross Income 100,000 sq. ft for the coming year |
||
|
average rent $15.00 per ft. |
$ 1,500,000 |
|
|
Less Vacancy Allowance (average 8%) |
$ (120,000) |
|
|
Effective Gross Income |
$ 1,380,000 |
|
|
Cleaning expenses (5% of net rev) |
$ (69,000) |
|
|
Insurance ($ 0.02 per dollar replacement, R.C. = $40 per ft. |
$ (80,000) |
|
|
Management & Maintenance (11% of revenue) |
$ (151,800) |
|
|
Reserve for Replacement (savings for major repairs) |
$ (50,000) |
|
|
Property Taxes ($0.10 per $100 of R.C.) |
$ (4,000) |
|
|
$ (354,800) |
||
|
Estimated Net Operating Income |
$ 1,025,200 |
|
|
If the terminal (ending) cap rate is projected at 10% what is the expected selling price of the property at the end of the holding period? |
||
Solutions
jeff jeffy answered 1 year agoRelated Solutions
Consider the following pro forma for the next 4 questions Potential Gross Income 100,000 sq. ft...
Consider the following pro forma for the next 4
questions
Potential Gross Income 100,000 sq. ft for the coming year
average rent $15.00 per ft.
$ 1,500,000
Less Vacancy Allowance (average 8%)
$ (120,000)
Effective Gross Income
$ 1,380,000
Cleaning expenses (5% of net rev)
$ (69,000)
Insurance ($ 0.02 per dollar replacement, R.C. = $40 per ft.
$ (80,000)
Management & Maintenance (11% of revenue)
$ (151,800)
Reserve for Replacement (savings for major repairs)
$ (50,000)
Property Taxes ($0.10...
Consider the following pro forma for the next 4 questions Potential Gross Income 100,000 sq. ft...
Consider the following pro forma for the next 4
questions
Potential Gross Income 100,000 sq. ft for the coming year
average rent $15.00 per ft.
$ 1,500,000
Less Vacancy Allowance (average 8%)
$ (120,000)
Effective Gross Income
$ 1,380,000
Cleaning expenses (5% of net rev)
$ (69,000)
Insurance ($ 0.02 per dollar replacement, R.C. = $40 per ft.
$ (80,000)
Management & Maintenance (11% of revenue)
$ (151,800)
Reserve for Replacement (savings for major repairs)
$ (50,000)
Property Taxes ($0.10...
Consider the following pro forma for the next 4questionsPotential Gross Income 100,000 sq. ft...
Consider the following pro forma for the next 4
questions
Potential Gross Income 100,000 sq. ft for the coming year
average rent $15.00 per ft.
$ 1,500,000
Less Vacancy Allowance (average 8%)
$ (120,000)
Effective Gross Income
$ 1,380,000
Cleaning expenses (5% of net rev)
$ (69,000)
Insurance ($ 0.02 per dollar replacement, R.C. = $40 per ft.
$ (80,000)
Management & Maintenance (11% of revenue)
$ (151,800)
Reserve for Replacement (savings for major repairs)
$ (50,000)
Property Taxes ($0.10...
Potential Gross Income 100,000 sq. ft for the coming year average rent $15.00 per ft. $ ...
Potential Gross Income 100,000 sq. ft for the coming year
average rent $15.00 per ft.
$ 1,500,000
Less Vacancy Allowance (average 8%)
$ (120,000)
Effective Gross Income
$ 1,380,000
Cleaning expenses (5% of net rev)
$ (69,000)
Insurance ($ 0.02 per dollar replacement, R.C. = $40 per ft.
$ (80,000)
Management & Maintenance (11% of revenue)
$ (151,800)
Reserve for Replacement (savings for major repairs)
$ (50,000)
Property Taxes ($0.10 per $100 of R.C.)
$
(4,000)
$ (354,800)
Estimated Net...
Potential Gross Income 100,000 sq. ft for the coming year average rent $15.00 per ft. $ ...
Potential Gross Income 100,000 sq. ft for the coming year
average rent $15.00 per ft.
$ 1,500,000
Less Vacancy Allowance (average 8%)
$ (120,000)
Effective Gross Income
$ 1,380,000
Cleaning expenses (5% of net rev)
$ (69,000)
Insurance ($ 0.02 per dollar replacement, R.C. = $40 per ft.
$ (80,000)
Management & Maintenance (11% of revenue)
$ (151,800)
Reserve for Replacement (savings for major repairs)
$ (50,000)
Property Taxes ($0.10 per $100 of R.C.)
$
(4,000)
$ (354,800)
Estimated Net...
Consider a 100,000 sq. ft. building that will be acquired (at price $0) and demolished by...
Consider a 100,000 sq. ft. building that will be acquired (at
price $0) and demolished by local government at the end of 15
years. Assume the building is fully leased building
under an absolute net lease structure (all expenses paid by
tenant); Consider 2 leases:
15 year lease at
$15/ft./yr.
5 year lease at
$15/ft./yr.
Suppose that $15 is the market rate and that the forecasted rent
growth rate is 0% . Also suppose that the discount rate for
contractual lease...
• Describe pro forma income and the importance of pro forma income in the evaluation of...
• Describe pro forma income and the importance of pro forma
income in the evaluation of the income statement. Choose at least
two items that are excluded from pro forma income. Suggest to
management why including the items would be misleading to investors
and creditors.
Chapter 4: 3. Fire Corp financial statements: Pro forma income statement Pro forma balance sheet Sales...
Chapter 4:
3. Fire Corp financial statements:
Pro forma income statement
Pro forma balance sheet
Sales
$ 32,000
Assets
$25,300
Debt
$ 5,800
Costs
$ 24,400
________
Equity
$ 19,500
Net income
$ 7,600
Total
$25,300
Total
$ 25,300
It expects 15% sales increase. It also predicts every item on
the balance sheet will increase
by 15% as well.
1.Create the pro forma statements.
2. What’s the plug variable here?
3. If Fire Corp pays half of income as dividend,...
Consider you have prepared Pro-forma income statements of a new venture that show a net income...
Consider you have prepared Pro-forma income statements of a new
venture that show a net income of PKR 50,000, PKR 100,000, and PKR
150,000 for the first three years of starting the business. You are
excited to see a positive cash inflow of PKR 300,000 for the first
three years. However, your classmate with business majors in
finance has highlighted that you may not have PKR 300,000 in cash,
although your Pro-forma income statements show that you will earn
that...
Suppose you are creating pro forma statements. Your sales forecast for next year is $4 million....
Suppose you are creating pro forma statements. Your sales
forecast for next year is $4 million. Explain how you make
forecasting on 1) direct costs (COGS), 2) depreciation expenses, 3)
inventory, and 4) retained earnings. For each item, explain how you
determine the multiplier (if needed), what information you need,
and what steps you must take in your forecasting.
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Explain each concept and give examples? (f) progressive (g) average tax rate (h) marginal tax rate...
- Compute the capacity (bottleneck rate) in jobs per hour (jph) of the following configurations and record...
- Two speakers that are 16.0m apart produce sound waves of frequency 270Hz in a room where...
- Consider the following three bonds: Bond Coupon Rate Maturity (years) Price A 0% 1.0 $947.5572 B...
- 1. What, if anything, should be done about the deficit? Would you increase revenue? If so,...
- What are the most important implementation of recommending solution including resources to be accessed by the...
- These questions are all related - hence I combined them. Thanks Suppose that in order to...
ADVERTISEMENT