Present the propertys operating statement in good form

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Bug Bastion Village, a student apartment complex, generates effective gross income of $26,000. Income tax savings are $12,500 (due to interest and depreciation expense, the owner's income tax liability for the year is $12,500 less than it would have been without the investment). There are no capital transactions, and all operating expenses were tax deductible. The after-tax cash flow to the equity investor was $13,800, and operating expenses equaled 90 percent of net operating income. What percent of net operating income is needed to cover the debt service obligation? Present the property's operating statement in good form.

Reference no: EM131020006

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