3 You have been asked to develop a pro forma statement of cash flow for Betts Distribution Center, an Internet-based order fulfillment/distribution/office/warehouse property. In addition to recoverable operating expenses, the new tenant will be billed for pass throughs including Insurance and property taxes, which will then be paid by the owner. The information given to you is listed below. Property Information: ETT DIITRIBUTION CENTER Age of Improvement years old Rentable Space 200,000 square feet Bingle Tenant 10-year lease term, bet, net Financial Information: Rent $7.00 per square feet (?-year term), flat Recoverable Expenses from Tenant $1.50 per square feet, Elxed Operating Expenses $700,000 Property Taxon $50,000 Insurance $15,000 Other Cash Outlays: Mlowances for Recurring CAPEX/Improve Allowance $60,000 Dardanti w 10 > R Answer is not complete. BETTS DISTRIBUTION CENTER $ 1,400,000 Rent Add: Recoveries 300,000 300,000 1,700,000 $ Effective gross income Less: Operating expenses(NR) Property taxes Insurance Total operating expenses Cap expenses/Improvement allowance Net operating income 700,000 50,000 15,000 765,000 60,000 825,000 875,000 $ 10 ER 40 W