Formulate a reconstructed operating statement

Assignment Help Financial Accounting
Reference no: EM131828123

Given the following owner's income and expense estimates for an apartment property, formulate a reconstructed operating statement. The building consists of 10 units that could rent for $550 per month each

Owner's Income Statement

Rental income (last year)


$60,600

Less: Expenses



Power

$2,200


Heat

1,700


Janitor

4,600


Water

3,700


Maintenance

4,800


Reserves for replacement

2,800


Management

3,000


Depreciation

5,000


Mortgage payments

6,300

34,100

Net income


$26,500

Estimating vacancy and collection losses at 5 percent of potential gross income, reconstruct the operating statement to obtain an estimate of NOI. Remember, there may be items in the owner's statement that should not be included in the reconstructed operating statement. Using the NOI and a Ro of 11.0 percent, calculate the property's indicated market value. Round your answer to the nearest $500.

Reference no: EM131828123

Questions Cloud

How should the bank manager adjust the banks maturity : how should the bank manager adjust the bank's maturity gap to take advantage of this anticipated increase? What if the manager believes rates will fall?
What were the confederacy advantage : What were the Confederacy's advantage? Why did the Confederacy lose the Civil War?
Contemporary war on terror and the cold war : Describe the continuities and discontinuities between the contemporary war on terror and the Cold War.
Prepare a short explanation of the nature of inventory fraud : There is considerable information regarding inventory frauds available on the Internet. Search for information about one of the two cases mentioned above.
Formulate a reconstructed operating statement : formulate a reconstructed operating statement. The building consists of 10 units that could rent for $550 per month each
Representative to the un from the nation of chad : Imagine that you are a representative to the UN from the nation of Chad. In a well composed essay, create a proposal which details the reasons
What additional costs might be incurred at runtime : What additional costs might be incurred at runtime (when the application program executes) as a result of using the 128-bit instead of the 64-bit format?
Purpose of preparing consolidated financial reports : Explain the purpose of preparing consolidated financial reports,and discuss the importance of these consolidated reports to financial report users
What is overflow and what is underflow : What is overflow? What is underflow? How can the probability of their occurrence be minimized?

Reviews

Write a Review

Financial Accounting Questions & Answers

  With respect to the distribution in redemption

Bristlebird Corporation (E&P of $700,000) has 3,000 shares of common stock outstanding. Juan owns 1,500 shares and his wife, Roberta, owns 1,500 shares. Juan and Roberta each have a basis of $90,000 in their Bristlebird stock. In the current year, Br..

  Determine each projects net present value

Most Company has an opportunity to invest in one of two new projects. Project Y requires a $330,000 investment for new machinery with a six-year life and no salvage value. Project Z requires a $330,000 investment for new machinery with a five-year li..

  The break-even point in dollars

The following data pertain to last month's operations: Selling price $ 30 per unit Variable production cost $ 15 per unit Fixed production cost $79,000 Variable selling & admin. expenses $ 3 per unit Fixed selling & admin. expenses $39,000 The break-..

  Montgomery record note payable and corresponding cost

On January 1, 2016, the Montgomery Company agreed to purchase a building by making six payments. The first three are to be $28,000 each, and will be paid on December 31, 2016, 2017, and 2018. At what amount should Montgomery record the note payable a..

  Prepare a production budget by quarters

Prepare a production budget by quarters for the 6-month period ended June 30, 2011 - prepare a direct materials budget by quarters for the 6-month period ended June 30, 2011.

  Explain why the amount of net income differs from the amount

What amount of net income would Spartan Company report on its 2010 income statement? Explain why the amount of net income differs from the amount of the ending Retained Earnings balance.

  Airline Journal Entries and T-accounts

Airline Journal Entries and T-accounts. Show all journal entries and t-accounts for Airline ABC'S ticket sales throughout the cycle including when the flight is taken and the cash is received. Instead of dates, number the entries in chronological ord..

  Define the receiables and what is the net income is there a

define the receiables and what is the net income. is there a way to get a reference to go by to know how to answer the

  What amount of these investigation costs can angel deduct

While she was a college student, angel lived by a bookstore located near campus. she thinks a bookstore located on the other side of campus would be successful. she incurs expenses of 42,800 (legal fees, accounting fees, marketing survey, etc.) in ex..

  What basis of accounting do enterprise

What basis of accounting do enterprise and internal service funds use and Which of the following is  not  a GASB-required statement for proprietary fun

  Prepare bond amortization schedule-effective-interest method

XYZ Company is building a new baseball stadium at a cost of $5,000,000. It received a down payment of $3,000,000 from local businesses to support the project, and now needs to borrow $2,000,000 to complete the project. Prepare the journal entry to re..

  Prepare the necessary journal entries for stone company

Prepare the necessary journal entries for Stone Company

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd