1. Based on the following information for Boston Properties, complete a 6-month Operating budget. (25 marks). The total asset value of Boston Properties is $25,000,000, and the owners equity is $18,000,000. The monthly rent of the residential units is $500,000 for the apartment buildings. Vacancy rate is expected to be 2% of monthly residential revenue. Bad Debt rate is expected to be 1% of monthly residential revenue. The commercial unit is rented for the first time on February 15. First months rent (March) and last months rent is received February 28. The monthly rent is $25,000. Monthly maintenance bill is $10,000 and paid monthly Salaries are $15,000 per month and paid monthly. Office expenses are $2,500 per month, but the goods are paid for every other month. Monthly gas and water charges are $25,000 and paid every other month. The mortgage payment is made monthly, consisting of $115,000 in interest and $20,000 in principal payments. The total value of the payment is $135,000 monthly. The mortgage is renegotiated in February. Interest charges are $100,000, and principal is $25,000. A new elevator is added in April for $400,000 and the bill is paid June 15. The life of the asset is 40 years. The tax bill is received in January and paid in February. The bill is $36,000 for six months. The monthly depreciation (excluding the new purchase) is $12,000 for all other assets not described in this question. Dividends of $12,000 are declared in January and paid April 30. 2. Does the corporation generate sufficient profit? (yes/no) What recommendation would you make to the Board of Chapter 6 / Page 13 Strategic and Financial Planning for Property Managers Directors/Stakeholders to address any issues you identified?