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 in which 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 one lot per month, and the first sale month is August. Consequently there are five lots sold in year one, twelve in years two through eight and two in year nine. Twenty-seven lots are in phase 1, thirty-three are in phase 2 and thirty-one are in Phase 3. 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.
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