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Case study 2. After years of good performance. Happy homes apartment building was sold in 2002 for $20, 00,000 and the new owners refurnished all apartment units. In 2003 the apartment building was re-opened. Please analyse the income statement below and explain the income trends. The building has 1600units was built in 1971, and the current loan balance is $16,395,772. Period ended Statement classification (wi) 31/12/06 31/12/07 31/12/08 31/12/09 Occupancy 95% 90% 92% 95% Base rent $1,100,000 $990,000 $950,000 $990,000 Laundry vending $12,000 $11,000 $11,000 $30,000 Parking income $42,000 $40,000 $41,000 $60,000 Other income $3,000 $8,000 $21,000 $20,000 Effective gross income $1,157,000 $1,049,000 $1,023,000 $1,100,000
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