Question: Use the capital structure for an acquisition and the operating cash flow for Year 1 to answer: -> Calculate the first year Return-On-Asset (ROA). Equity

Use the capital structure for an acquisition and the operating cash flow for Year 1 to answer: -> Calculate the first year Return-On-Asset (ROA).

Equity 4,500,000$ Debt 8,000,000$ Total Capital 12,500,000$ Potential Gross Income 1,637,000$ Vacancy & Loss (81,850)$ Effective Gross Income 1,555,150$ Operating Expenses (590,957)$ Net Operating Income 964,193$ Debt Service (320,000)$ Loan Reserves (20,000)$ Before-Tax Cash Flow 624,193$

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