Accounting question NOI/BTCF/PRETAX

Facts and information listed below is needed to resolve questions 70 and 73: 

On January 1st of last year, Lauren purchased a shopping center (building and land) at a 9.6% cap rate.  Lauren made an initial investment of $1,750,000 in cash and took out a non-recourse loan in the amount of $7,000,000.  The bank made Lauren sign a personal guarantee in the amount of $1,400,000 or 20% of the total loan.  On December 31st of the current year, her books and records showed the following items (alphabetically arranged for your convenience) and amounts:

Gross Potential Rents$ 1,393,227.

Depreciation Expense$  238,636.

Insurance Expense$  21,224.

Management Fees$  63,672.

Mortgage Interest $  531,925.

Mortgage Principal Payment $  116,399.

Other Operating Expenses$  222,854.

Property Taxes$  90,203.

Vacancy and Credit Loss$  69,661.

70. What is Laurens’s net operating income (loss) and taxable income (loss) for the year?

71. What is Lauren’s taxes payable (benefit) assuming her Federal income tax rate is 39.6%; please do not add the additional 3.8% surcharge in calculating the taxes to be paid.

72. What is Lauren’s before tax and after tax cash flows?

73. What are Lauren’s pre-tax cash on cash and after-tax cash on cash returns?


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