Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN: 9781285190907
Author: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher: Cengage Learning
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Question
Chapter 3, Problem 20PC
a
To determine
Sate the operating difficulties and need of restructuring.
b
To determine
State the indicators of turnaround efforts and relation among cash flows.
c
To determine
State the signals of firm is engaged in aggressive revenue recognition and fixed its general operating problems.
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You have been asked to develop a pro forma statement of cash flow for West Office Plaza. The information given to you is listed below.
Property Information:
WEST OFFICE PLAZA
Rentable Area
Age
Number of Stories
Number of Tenants
Financial Information:
Base Rent Average
Other Income/Parking/Storage
Expenses Recoverable from Tenants
Current Vacancy
Expenses:
334,000 square feet
8 years
Management/Administration/Security/Ownership
Property Taxes
Insurance
General Operations/Leasing Expense/Marketing
Utilities
Janitorial/Cleaning
Business Taxes
Other:
Recurring CAPEX/Improvement Allowance
Revenue
Add:
15
40
Less:
Less: Operating expenses
Required:
a. Develop a pro forma statement of cash flow for a base year showing net operating income (NOI) for West Office Plaza.
WEST OFFICE PLAZA
Total operating expenses
Cap expenses/Improvement allowance
$20 per square feet
$ 3.20 per square feet
$ 4.20 per square feet
5%
$ 698,400
$ 683,500
$ 433,400
$ 675,500
$1,167,600
$ 497,500
$ 118,500
$ 708,500
ABC Turbine Corporation produces and sells turbine generators for such applications as charging electric, hybrid vehicles. ABC Turbine report following financial data for a recent year (in thousands ) Net cash flows from operating activities xi(1, 680) Cash and cash equivalents 4,060
a. Determine the monthly cash expenses thousands
b. Determine the ratio of cash to monthly cash expenses months
. Based on your analysis, do you believe that ABC Turbine will remain in business?
You have been asked to develop a pro forma statement of cash flow for West Office Plaza. The information given to you is listed
below.
Property Information:
WEST OFFICE PLAZA
Rentable Area
Age
Number of Stories
Number of Tenants
312,000 square feet
8 years
15
40
Financial Information:
Base Rent Average
Other Income/Parking/Storage
Expenses Recoverable from Tenants
Current Vacancy
$ 20 per square feet
$ 2.10 per square feet
$ 3.10 per square feet
5%
Expenses:
Management/Administration/Security/Ownership
Property Taxes
Insurance
General Operations/Leasing Expense/Marketing
Utilities
Janitorial/cleaning
Business Taxes
Other:
Recurring CAPEX/Improvement Allowance
$ 696,206
$ 678,000
$ 431,200
$ 670,000
$ 1,162, 100
$ 492,000
$ 113,000
$ 703,000
Required:
a. Develop a pro forma statement of cash flow for a base year showing net operating income (NOI) for West Office Plaza.
Chapter 3 Solutions
Financial Reporting, Financial Statement Analysis and Valuation
Ch. 3 - Need for a Statement of Cash Flows. The accrual...Ch. 3 - Articulation of the Statement of Cash Flows with...Ch. 3 - Classification of Interest Expense. Under U.S....Ch. 3 - Prob. 4QECh. 3 - Classification of Changes in Short-Term Financing....Ch. 3 - Classification of Cash Flows Related to...Ch. 3 - Treatment of Non-Cash Exchanges. The acquisition...Ch. 3 - Computing Cash Collections from Customers....Ch. 3 - Computing Cash Payments to Suppliers. Lowes...Ch. 3 - Computing Cash Payments for Income Taxes. Visa...
Ch. 3 - Interpreting the Relation between Net Income and...Ch. 3 - Interpreting the Relation between Net Income and...Ch. 3 - Interpreting Relations among Cash Flows from...Ch. 3 - Interpreting Relations among Cash Flows from...Ch. 3 - Interpreting the Statement of Cash Flows. The...Ch. 3 - Interpreting the Statement of Cash Flows. Texas...Ch. 3 - Interpreting the Statement of Cash Flows. Tesla...Ch. 3 - Interpreting the Statement of Cash Flows. Gap Inc....Ch. 3 - Prob. 19PCCh. 3 - Prob. 20PCCh. 3 - Interpreting the Statement of Cash Flows....Ch. 3 - Extracting Performance Trends from the Statement...Ch. 3 - Interpreting a Direct Method Statement of Cash...Ch. 3 - Prob. 24PCCh. 3 - Preparing a Statement of Cash Flows from Balance...Ch. 3 - Prob. 26PCCh. 3 - Preparing a Statement of Cash Flows from Balance...Ch. 3 - Prob. 1AICCh. 3 - Prob. 1BICCh. 3 - Prob. 1CICCh. 3 - Prob. 1DICCh. 3 - Prob. 1EICCh. 3 - Prob. 1FICCh. 3 - Prob. 1GICCh. 3 - Prob. 1HICCh. 3 - Prob. 2AICCh. 3 - Prob. 2BICCh. 3 - Prob. 2CICCh. 3 - Prob. 2DICCh. 3 - Prob. 2EICCh. 3 - Prob. 2FICCh. 3 - Prob. 3IC
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