1)This Excel Project requires you to create a 10-year, generic, shell proforma statement of cash flow of a commercial building. You should provide detailed line items for all revenue and all expense items that you believe would detail the most complex commercial buildings. Once you have your generic proforma complete, you should fill in all the numbers associated with the example lease we studied in class. Next, students should identify all of the various revenue and expense items that do not specifically include a dollar amount and put an X in the first year of the proforma if the line item is discussed in the lease. Lastly, leave the first year blank if you think the item should be in your proforma, but it does not have any associate with this particular lease. (Hint: you should create rows for every revenue and expense line that you think should be on a proforma regardless of whether or not it appears in the lease). Once you have identified all the rows necessary for your shell proforma statement, then fill in the actual numbers identified in the lease (there are not many numbers to fill in) and put an X in the first year if it is in the lease but there are no numbers.

Your grade on this problem will be based on:

1)Organization: Does your spreadsheet adequately organize all the revenue and expense items into proper major categories and sub-categories. For example, you may have a heading under Operating Expenses titled Utilities and then have separate line items for every utility that generate expenses at the property. You will then have to figure out which expenses will be reimbursed. If an expense is reimbursed, should it be added as an expense and a revenue line?

2)Completeness: Does your spreadsheet identify all the major categories of the proforma? Does it list all/most of the sub-categories? Does it include all of the expense and revenue line items that this building will experience? At a minimum, you should identify all the line items that this lease affect in the proforma cash flow.

3)Numbers: You should assume that you build this proforma cash flow statement for 10 years. You should fill in the numbers that you find in the lease. So, for example, if you do not know an amount for Gas Utility, you should still include the line item, but just put an X in as placeholders for each year if the number cannot be determined if it is discussed in the lease and leave it blank if it is not discussed in the lease.

4)Style: Formatting is always important in the workplace. You can earn style points for creating a well formatted spreadsheet.