You have been asked to develop a pro forma statement of cash flow for Betts Distribution Center, an Internet-based orderfulfillment/distribution/office/warehouse property. In addition to recoverable operating expenses, the new tenant will be billed for passthroughs 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 CENTERAge of ImprovementRentable SpaceSingle TenantFinancial Information:Rent8 years old230,000 square feet10-year lease term, net, netRecoverable Expenses from TenantOperating ExpensesProperty TaxesInsuranceOther Cash Outlays:Allowances for:Recurring CAPEX/Improve Allowance$7.00 per square feet (7-year term), flat$3.00 per square feet, fixed$775,000$53,000$18,000$67,500Required:a. Develop a pro forma statement for the Betts property for a base year showing net operating income (NOI). Required:a. Develop a pro forma statement for the Betts property for a base year showing net operating income (NOI).RentAdd:Less:BETTS DISTRIBUTION CENTERTotal operating expensesCap expenses/Improvement allowance0$000

Base rent per square feet = $7 Number of square feet = 230,000 Total base rent =…

Answered: You have been asked to develop a pro…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter9: Long-term Assets: Fixed And Intangible

Section: Chapter Questions

Problem 1PB

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Capital & Revenue Expenditure Consider the following list of expenses incurred by a company: Purchase of a motor car Claim for a meal Purchase of shares in a supplier Purchase of a new computer Payment for hotel accommodation Installation cost for server Purchase of raw materials Repair of motor vehicles Purchase of new stationery Payment of an insurance premium Wages Purchase of a new plot of land. Required: Examine this list and determine if each expense is revenue or capital expenditure. You are required to provide a short explanation for your choice.
Which of the following transactions is revenue expenditure? A Expenditure resulting in improvements to property B Expenditure on heat and light C Purchasing non-current assets D Repaying a bank overdraft
Choose the correct answer in the following statements about financial and real assets. Required: a. Toyota takes out a bank loan to finance the construction of a new factory. Toyota (Click to select) ✓a (Click to select) transaction. asset-the factory. The loan is a [(Click to select) asset that is (Click to select) in the b. Toyota pays off its loan. When the loan is repaid, the (Click to select) asset is (Click to select) but the (Click to select) asset continues to exist. c. Toyota uses $10 million of cash on hand to purchase additional inventory of spare auto parts. The cash is a (Click to select) ✓ asset that is traded in exchange for a [(Click to select) asset, inventory.
Write a memo to your supervisor explaining in your own words the concept of amortization as it is used in accounting. DATE: TO: FROM: SUBJECT: Supervisor (Student Name) The concept of amortization In business, property, plant, and equipment wears out as it is used to create expenses leaving less and less of the assef's benefits for the future. Throughout the asset's life, accountants gradually transfer part of the to an expense account called
Group Case Study: As a loan officer in a bank, you received an application for a real estate loan from a borrower to buy an apartment in Dubai. The apartment is an unfurnished one bedroom flat situated in Park Island building (Sanibel) in Dubai Marina. Details about the property (and a comparable one sold in the same building) are presented in the following table: Property to be valued (A) Comparable Property (B) in March 2022 Sale date Selling price/value (AED) Gross annual rent (AED) January 2022 1,550,000 Annual Maintenance fees 20 20 (AED/square feet) Vacancy rate (%) Area (square feet) Price (AED/square feet) Gross annual rent (AED/square feet) Proximity to A Parking available Floor level Exterior (Building) 10 10 922 937 Same building 1. 1. high Floor to Ceiling Glass Full Marina View high Floor to Ceiling Glass Full Marina View View a. Using the market value approach, find the value of the property (A) (Suppose that the price listed is the selling price). b. Using the income…
Which of the following items should be accounted for as a capital expenditure?a. The monthly rental cost of an office buildingb. Costs incurred to repair leaks in a building’s roofc. Maintenance fees paid with funds provided by the company’s capitald. Taxes paid in conjunction with the purchase of office equipment
Money received from customers for products to be delivered in the future is recorded as: A . revenue and an asset
4. How can entries be made research costs and development costs? What account do they use? For example, for other intangible assets, we purchase 'Patent' with cash and amortize them. How about R&D costs? How do they appear in journal entries? I want the names of entries. On what account do we credit and debit?
This topic is about PPE. Please check the problem on the attached picture. Princess company shall record the asset received at? Sarah Company shall record the asset received at?
For long-term construction projects, the amount of “billings” is reported in the balance sheet by: Multiple Choice netting it against “construction in progress.” adding it to “construction in progress.” adding it to “accounts receivable.” netting it against “accounts receivable.”
The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are identified by an asterisk. Instructions 1. Assign each payment and receipt to Land (unlimited life), Land Improvements (limited life), Building, or Other Accounts. Indicate receipts by an asterisk. Identify each item by letter and list the amounts in columnar form, as follows: 2. Determine the amount debited to Land, Land Improvements, and Building. 3. The costs assigned to the land, which is used as a plant site, will not be depreciated, while the costs assigned to land improvements will be depreciated. Explain this seemingly contradictory application of the concept of depreciation. 4. What would be the effect on the current years income statement and balance sheet if the cost of filling and grading land of 12,000 [payment (i)] was incorrectly classified as Land Improvements rather than Land? Assume that Land Improvements are depreciated over a 20-year life using the double-declining-balance method.
The table below show the three kinds of assets, from your own understanding of investment, fill out the boxes of the investments you made or you plan to make in each type of assets. 3 Personal/Social Турes Tangible of assets Financial

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