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