Profit, Cash Flow, Project Summary Tables, Lot Sale Schedule
The
profit table annualizes project
gross revenue,
sale cost, net revenue, cost of goods sold, gross profit,
interest, and profit before tax, and
provides a summation column. The
interest expense is based on the allocation
method of accounting whereby interest that is
not allocated/expensed in any given year is carried forward
to subsequent
years.
The cash flow table reflects annual cash flows. It shows what every developer knows to be true - cash is usually tight in early years of the project. Note that return of equity to the owner occurs in the project’s final year.
The project summary table is a restatement of the profit table's summation column. Additionally, the table displays gross revenue, sale cost, net revenue, cost of goods sold, gross profit, interest, and profit before tax on per lot, percentage, and per acre basis.
The lot sale schedule displays how many lots are sold in each project year, and if you are dealing with a multi-phase project, how many lots are sold per year per phase. In the case of the sample project, absorption is two lots per month, and the first sale month is November. Consequently there are four lots sold in year one, twenty-four in year two, twenty-four in year three of which ten are from phase 1 and fourteen are from phase 2, twenty-four in year four, and the last seven lots sell in year five. The lot sale schedule is an easy way to see when additional phases will come on line.
The cash flow table reflects annual cash flows. It shows what every developer knows to be true - cash is usually tight in early years of the project. Note that return of equity to the owner occurs in the project’s final year.
The project summary table is a restatement of the profit table's summation column. Additionally, the table displays gross revenue, sale cost, net revenue, cost of goods sold, gross profit, interest, and profit before tax on per lot, percentage, and per acre basis.
The lot sale schedule displays how many lots are sold in each project year, and if you are dealing with a multi-phase project, how many lots are sold per year per phase. In the case of the sample project, absorption is two lots per month, and the first sale month is November. Consequently there are four lots sold in year one, twenty-four in year two, twenty-four in year three of which ten are from phase 1 and fourteen are from phase 2, twenty-four in year four, and the last seven lots sell in year five. The lot sale schedule is an easy way to see when additional phases will come on line.
The
developer/investor's ownership is in the form of a 'pass-through'
entity (i.e., S-Corp, LLC). As such the entity is not taxed,
but project income
flows through to the owner(s) and is taxed at his or her
marginal tax rate.
If multiple owners are involved with the project, each
one is taxed at his or her marginal rate under the
applicable filing status. The tables here reflect before tax
calculations.
As
is the case with any output page, the profit, cash flow, and
project summary tables, as well as the lot sale schedule
can be
printed. Click on
the links below to see any of the model
output pages.
If you wish to ask us a question about the model, 'Contact
Us' and we will get back to you
as soon as possible.
Land Development Model, LLC
302 West Lafayette Road
Medina, OH 44256
330.441.1690
302 West Lafayette Road
Medina, OH 44256
330.441.1690