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Problem 9-8 You have been asked to develop a pro forma statement of cash flow for Betts Distribution Center, an Internet-based order fulfillment/distribution/office/warehouse property. In addition to recoverable operating expenses, the new tenant will be billed for pass throughs including insurance and property taxes, which will then be paid by the owner. The information given to you is listed below Property Information: BETTS DISTRIBUTION CENTER Age of Improvement Rentable Space Single Tenant Financial Information: Rent 8 years old 222,000 square feet 10-year lease term, net, net Recoverable Expenses from Tenant Operating Expenses Property Taxes Insurance Other Cash Outleys: Allowances for: Recurring CAPEX/Improve Allowance $7.00 per square feet (7-year term), flat $2.60 per square feet, fixed $755,000 $52,200 $17,200 $65,500 Required: a. Develop a pro forma statement for the Betts property for a base year showing net operating income (NO)

Problem 9-8 You have been asked to develop a pro forma statement of cash flow for Betts Distribution Center, an Internet-based order fulfillment/distribution/office/warehouse property. In addition to recoverable operating expenses, the new tenant will be billed for pass throughs including insurance and property taxes, which will then be paid by the owner. The information given to you is listed below Property Information: BETTS DISTRIBUTION CENTER Age of Improvement Rentable Space Single Tenant Financial Information: Rent 8 years old 222,000 square feet 10-year lease term, net, net Recoverable Expenses from Tenant Operating Expenses Property Taxes Insurance Other Cash Outleys: Allowances for: Recurring CAPEX/Improve Allowance $7.00 per square feet (7-year term), flat $2.60 per square feet, fixed $755,000 $52,200 $17,200 $65,500 Required: a. Develop a pro forma statement for the Betts property for a base year showing net operating income (NO)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 9-8 You have been asked to develop a pro forma statement of cash flow for Betts Distribution Center, an Internet-based order fulfillment/distribution/office/warehouse property. In addition to recoverable operating expenses, the new tenant will be billed for pass throughs including insurance and property taxes, which will then be paid by the owner. The information given to you is listed below. Property Information: BETTS DISTRIBUTION CENTER Age of Improvement Rentable Space Single Tenant. Financial Information: Rent Recoverable Expenses from Tenant Operating Expenses Property Taxes Insurance Other Cash Outleys: Allowances for: Recurring CAPEX/Improve Allowance 8 years old 222,000 square feet 10-year lease term, net, net Rent Add: Less $7.00 per square feet (7-year term), flat. $2.60 per square feet, fixed Required: o. Develop a pro forma statement for the Betts property for a base year showing net operating income (NOI). BETTS DISTRIBUTION CENTER Total operating expenses Cap expenses/Improvement allowance $755,000 $52,200 $17,200 $65,500
Transcribed Image Text:Problem 9-8 You have been asked to develop a pro forma statement of cash flow for Betts Distribution Center, an Internet-based order fulfillment/distribution/office/warehouse property. In addition to recoverable operating expenses, the new tenant will be billed for pass throughs including insurance and property taxes, which will then be paid by the owner. The information given to you is listed below. Property Information: BETTS DISTRIBUTION CENTER Age of Improvement Rentable Space Single Tenant. Financial Information: Rent Recoverable Expenses from Tenant Operating Expenses Property Taxes Insurance Other Cash Outleys: Allowances for: Recurring CAPEX/Improve Allowance 8 years old 222,000 square feet 10-year lease term, net, net Rent Add: Less $7.00 per square feet (7-year term), flat. $2.60 per square feet, fixed Required: o. Develop a pro forma statement for the Betts property for a base year showing net operating income (NOI). BETTS DISTRIBUTION CENTER Total operating expenses Cap expenses/Improvement allowance $755,000 $52,200 $17,200 $65,500
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