Accounting question NOI/BTCF/PRETAX

Aug 10th, 2015
Price: $25 USD

Question description

Facts and information listed below is needed to resolve questions 70 and 73: 

On January 1st of last year, Lauren purchased a shopping center (building and land) at a 9.6% cap rate.  Lauren made an initial investment of $1,750,000 in cash and took out a non-recourse loan in the amount of $7,000,000.  The bank made Lauren sign a personal guarantee in the amount of $1,400,000 or 20% of the total loan.  On December 31st of the current year, her books and records showed the following items (alphabetically arranged for your convenience) and amounts:

Gross Potential Rents$ 1,393,227.

Depreciation Expense$  238,636.

Insurance Expense$  21,224.

Management Fees$  63,672.

Mortgage Interest $  531,925.

Mortgage Principal Payment $  116,399.

Other Operating Expenses$  222,854.

Property Taxes$  90,203.

Vacancy and Credit Loss$  69,661.

70. What is Laurens’s net operating income (loss) and taxable income (loss) for the year?

71. What is Lauren’s taxes payable (benefit) assuming her Federal income tax rate is 39.6%; please do not add the additional 3.8% surcharge in calculating the taxes to be paid.

72. What is Lauren’s before tax and after tax cash flows?

73. What are Lauren’s pre-tax cash on cash and after-tax cash on cash returns?

Tutor Answer

(Top Tutor) Daniel C.
School: Cornell University

Studypool has helped 1,244,100 students

Review from our student for this Answer

Aug 14th, 2015
"excellent work as always thanks for the help"
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1831 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors