Does the building have a positive cash flow

Assignment Help Business Management
Reference no: EM131815140

Fred and Barney are looking for an investment. Near Prinstone University is a student housing building. It's physically rock solid (of course) but the stone-age friends aren't sure if it is a good investment. 

Here's the information that they were given (amounts in clams): 

Gross Income $10,000 

Income tax savings $1,000 (What the owners will save in annual income taxes.) 

After Tax Flow $2,100 

Operating expenses/ Net Operating Inc. 90% 

Does the building have a positive cash flow? Show your work by creating a "good form" cash flow statement. What is the debt service ratio for the property?

Reference no: EM131815140

Questions Cloud

Property tax in accordance of tax evaluation criteria : List the advantages and disadvantages of property tax in accordance of tax evaluation criteria (efficiency, equity, adequacy, and transparency).
Discuss what some of these political problems can be : Discuss what some of these political problems can be. What are the moral and ethical implications of political interference on international business?
What is the profit margin : For the period, the firm paid $5,200 in interest. The tax rate is 28 percent. What is the profit margin?
Analyze the TPP using one of the trade theories : Explain why you feel each pro/con is significant enough to warrant discussion within the congressional committee - nalyze the TPP using one of trade theories
Does the building have a positive cash flow : Does the building have a positive cash flow? Show your work by creating a "good form" cash flow statement. What is the debt service ratio for the property?
Compute the amount lyle would withdraw : At the end of the 9 years, Lyle withdrew the accumulated amount of money. Compute the amount Lyle would withdraw assuming the investment earns simple interest
Journalize the closing entries for Blume Irrigation System : Preparing financial statements including a classified balance sheet in report form, preparing closing entries, and using the current ratio to evaluate.
Discuss how bridge the gap between theory and practice : managerial accounting--to make the study of accounting more meaningful, and to bridge the gap between theory and practice
Minimizing errors in projections : Break even analysis utilizes both current and projected figures. In a rapidly changing economy, there are many individuals who are finding that their initial

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

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