You are interested in purchasing an apartment complex for
$2,000,000 that has Net Operating Income (NOI)...
You are interested in purchasing an apartment complex for
$2,000,000 that has Net Operating Income (NOI) of $120,000 and is
financed with an 80% LTV mortgage at 4%
A. What is the Cap Rate?
B. What is the ROA?
C. What is the leverage ratio?
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...
Using the following information, compute net operating income (
NOI ) for the first year of...
Using the following information, compute net operating income (
NOI ) for the first year of operations. Use an “above-line”
treatment of capital expenditures.
Number of apartments: 10
Rent per month per apartment: $800
Expected vacancy and collection loss: 5 percent
Annual maintenance: $12,000
Annual depreciation: $6,000
Property taxes: $4,000
Property insurance: $5,000
Management: $6,000
Capital expenditures: $5,000
Income taxes: $9,000
Other operating expenses: $3,000
Annual mortgage debt payments: $14,000
a)
$27,200
b)
$41,200
c)
$47,200
d)
$50,200
e)
$56,200
Why is “net operating income” on the functional format income
statement the same as “net operating...
Why is “net operating income” on the functional format income
statement the same as “net operating income” on the contribution
format income statement.
Gross Margin
8,603,560
46.76%
10,530,320
49.30%
11,772,882
48.27%
30,762,309
100.00%
less: Marketing Expenses (Sch 7)
5,358,000
29.12%
6,194,000
29.00%
7,010,000
28.74%
8,781,000
28.54%
less: G & A Expense (Sch 8)
1,845,000
10.03%
2,004,000
9.38%
2,202,000
9.03%
0
0.00%
Net Operating
Income
1,400,560
7.61%
2,332,320
10.92%
2,560,882
10.50%
21,981,309
71.46%
Contribution Margin
9,106,560
49.57%
10,686,320
50.10%
11,345,882...
A) The firm has a gross profit of $100, operating income (EBIT)
of $70, taxable income...
A) The firm has a gross profit of $100, operating income (EBIT)
of $70, taxable income (EBT) of $65, net income of $45, total
assets of $4,000, total equity of $1,200, and total sales of $200.
What is net profit margin?
B)The company has net income of $30,000 for the year and paid
dividends of $40,000. At the beginning of the year, the
company had common stock of $50,000, paid-in surplus of $60,000,
and retained earnings of $70,000. At the end...
Net operating income (NOI) is expected to be level at $100,000
per year for the next...
Net operating income (NOI) is expected to be level at $100,000
per year for the next five years because of existing leases.
Starting in Year 6, the NOI is expected to increase to $120,000
because of lease rollovers and increase at 2 percent per year
thereafter. The property value is also expected to increase at 2
percent per year after Year 5. Investors require a 12 percent
return and expect to hold the property for five years. What is the...
Mowrey Inc. has gross income of $400,000 (including $150,000
capital gain) and operating expenses of $500,000....
Mowrey Inc. has gross income of $400,000 (including $150,000
capital gain) and operating expenses of $500,000. Mowrey Inc. has
an unexpired capital loss carryover of
$40,000. What is Mowrey’s net operating loss
(NOL)?
Company III has provided the following operating information:
sales $70,000, purchased inventory $68,000, net income $10,000,...
Company III has provided the following operating information:
sales $70,000, purchased inventory $68,000, net income $10,000,
beginning inventory $25,000, and gross profit $20,000. How much was
Company III 's ending inventory?
a.
$33,000
b.
$12,000
c.
$43,000
d.
$113,000