Midwest Properties: Quarterly Forecasting Dennis Clarkson manages several buildings for Midwest Properties, which owns and manages apam buldings in university cities such as Madison, Wisconsin, and Champaign-Urbana, Illinois, Midwest's tenants are overwhelmingly students, and the buildings. Wate, for-profit university residence halls. As a result of this specialized clientele, Midwest's revenues and expenses follow a predictable seasonal pattern. From ember through May, Vacancy rates are negligible, but they rise rapidly in June, July, and August The summer months require careful cash flow planning. The company schedules cleaning, painting, repairs, and renovations when Vacature highest, so expenses for supplies, materials, temporary student labor and outside contractors peak when revenues are at their low point for the year, Dennis in preparing his budget for July, August, and September to submit to headquarters in Chicago. His budgeting forms include adjusted flyres for the preceding quarter Cash Inflows Dennis is responsible for 200 rental units: 75% are direct rentals at $625 per month and 25% are contracted to Mendota University at $475 each per month Direct rental pay on the first of the month, and the university makes quarterly payments at the end of each quarter, regardless of whether the apartments are occupied Rents are scheduled to increase by 55% in September, the increase will affect both direct rentals and the university's payment at the end of the month. By law, rental companies must segregate security and damage deposits from operating funds and return them to tonants with interest when they vacate apartments, so these funds 1. Complete the following table of cash ketlows for the months of July, August, and September. (Round to the nearest dollar) July Occupied direct rental unds 75 Collecties en direct rentals S Contract rental payments 5 Damage Doments 5 Tot cash flow Midwest Properties: Quarterly Forecasting Dennis Clarkson manages several buildings for Midwest Properties, which owns and manages apam buldings in university cities such as Madison, Wisconsin, and Champaign-Urbana, Illinois, Midwest's tenants are overwhelmingly students, and the buildings. Wate, for-profit university residence halls. As a result of this specialized clientele, Midwest's revenues and expenses follow a predictable seasonal pattern. From ember through May, Vacancy rates are negligible, but they rise rapidly in June, July, and August The summer months require careful cash flow planning. The company schedules cleaning, painting, repairs, and renovations when Vacature highest, so expenses for supplies, materials, temporary student labor and outside contractors peak when revenues are at their low point for the year, Dennis in preparing his budget for July, August, and September to submit to headquarters in Chicago. His budgeting forms include adjusted flyres for the preceding quarter Cash Inflows Dennis is responsible for 200 rental units: 75% are direct rentals at $625 per month and 25% are contracted to Mendota University at $475 each per month Direct rental pay on the first of the month, and the university makes quarterly payments at the end of each quarter, regardless of whether the apartments are occupied Rents are scheduled to increase by 55% in September, the increase will affect both direct rentals and the university's payment at the end of the month. By law, rental companies must segregate security and damage deposits from operating funds and return them to tonants with interest when they vacate apartments, so these funds 1. Complete the following table of cash ketlows for the months of July, August, and September. (Round to the nearest dollar) July Occupied direct rental unds 75 Collecties en direct rentals S Contract rental payments 5 Damage Doments 5 Tot cash flow
