WISDOM - Cash flow and operations

1. All operational expenses including closing costs, wages, office expenses, ad, dividend payments will be generated by rental income, interest income and cash reserves.

a. Rental income: Until property is sold via TIC and LLCs, it generates 8% of cash return on invested fund.

b. Interest income: All cash in the firm will seek highest yield.

c. Cash reserve: At any time WISDOM will have $500,000 or more as cash reserve.

2009:
1. $5 Million capital ready by 7-1-2009
2. Acquire A1 by 10-1-2009
3. Interest income on 3 months at 4%, 5000,000 @ 4% = 200,000 / 4 = $50,000
4. Rental income on 3 months at 8%, 4,000,000 @ 8% = 320,000 / 4 = $80,000
5. Interest income on $1,000,000 for 6 months, $1,000,000 @4% = $40,000/2= $20,000
6. Total income: $150,000
7. Expenses: Wage & payroll tax, 보험 = $60,000 + 10,000 = 70,000
Office rent, phone, parking, ect. = 3,000 @ 6 = 18,000
Ad & promotions = 2000 @ 6 = 12,000
Legal & Accounting = 20,000
Miscelleneous: 30,000
Total: $150,000
8. Net cash flow in 2009: -0-