Balance Sheet

1
Chapter 11

• Balance Sheet
• Assets and Liabilities
• Net Worth / Equity
• P L Statement
• Operating Statement
• Only Operating Expenses

2

• Scheduled (Potential) Gross Income
• Vacancy Collection Loss
• Gross Operating (Effective Gross) Income
• Operating Expenses
• Fixed Expenses
• Variable Expenses
• Pro Forma Statement
• Cash Basis and Accrual Accounting

3

• Preparing Statements
• Audited and Unaudited
• Problem Areas
• Time Span, Management Costs, Utility Costs,
  National Averages
• Supplemental Information
• Liquidity
• Ratio of Current Assets to Current Liabilities
• Leverage
• Debt to Equity Ratio

4

• Income/Expense Ratio
• NOI Fixed Expenses Break Even Multiplier
• Multiplier 1 ? Break Even and gt1 Better
• Activity
• Ratio of Gross Operating Income to Total Assets
• Gross Income Multiplier
• Profitability
• Return on Capital Invested Ratio of After-Tax
  Profit to Current Market Value
• Cash Return (Cash on Cash) Ratio of Income to
  Current Market Value of Equity

5

• Loan Constant
• Ratio of Debt Service to the Loan Amount