Professional Documents
Culture Documents
A lessee enters into a five-year lease of a retail store. The lease is non-cancellable and the
lessee has no option to extend the lease. The lessee is required to make fixed annual
payments of CU500. In addition, the lessee is required to make payments equal to
1 percent of sales from the leased store. The lessee forecasts the following sales for the store
and assigns each outcome a probability:
Sales Level
Total forecast sales years 1 5 (CU)
Probability that forecast sales will occur
Probability weighted expected sales
Total contingent rentals 1% of forecast sales (CU)
Total fixed rentals years 1 5 (CU) - at CU 500 per year
Total estimated rentals years 1 5 (CU)
10000
10%
1,000.00
20000
60%
12,000.00
1
2
3
4
5
1
500
500
500
500
500
2500
500
1000 423.66393254 576.33606746
550
1050 366.0303258 683.9696742
650
1150 297.63335838 852.36664162
700
1200 212.39669421 987.60330579
750
1250 113.63636364 1136.3636364
3150
5650 1413.3606746 4236.6393254
amortization expense per year =
847.33
Interest expense
various
Expense = cash outflows
or the store
es Level
35000
30%
10,500.00
Expected
Value
100%
23,500.00
235.00
500.00
735.00
Balance
2735.14290504
2358.65719555
1884.5229151
1342.97520661
727.272727273
0
Not Signif.
PERFECT
Forecast
Scenario 1
No
Adjustment
Scenario 2
Continuous
Adjustment
820.54
782.89
735.48
681.33
619.76
3640
750.87
750.87
765.23
755.93
735.03
736.19
699.81
703.67
689.06
693.35
3640 3640.002055
2,735.14
904.86
3,640.00
average=
Scenario 1
No
Adjustment
Diff from
perfect
8.5%
2.3%
0.1%
-2.7%
-11.2%
-0.6%
t rent examples
ORD
Balance
4236.63932543
Not Signif.
PERFECT
Forecast
Scenario 3
No
Adjustment
Scenario 4
Continuous
Adjustment
Scenario 3
No
Adjustment
Diff from
perfect
3660.30325797
2976.33358377
2123.96694215
1136.36363636
-2.273737E-012
4,236.64
1,413.36
5,650.00
1,270.99
1,213.36
1,144.96
1,059.72
960.96
5650
1,100.87
1,100.87
1,105.23
1,134.24
1,155.03
1,169.82
1,149.81
1,145.06
1,139.06
1,100.02
5650 5650.002065
average=
13.4%
8.9%
-0.9%
-8.5%
-18.5%
-1.1%
Scenario 2
Adjusted
Year 3
Diff from
perfect
8.5%
3.4%
-0.1%
-3.3%
-11.9%
-0.7%
Scenario 4
Adjusted
Year 3
Diff from
perfect
13.4%
6.5%
-2.2%
-8.1%
-14.5%
-1.0%
10000
10%
1,000.00
20000
60%
12,000.00
Period
0
1
2
3
4
5
1
500
500
500
500
500
2500
Contingent
payment
235
235
235
235
235
1175
Total
payment
735
735
735
735
735
3675
Interest
278.622828
232.98511
182.783621
127.561983
66.8181818
888.771724
Principal
Reduction
456.377172
502.01489
552.216379
607.438017
668.181818
2786.22828
End of Year 1
debit
credit
557.25
557.25
Amortization expense
Acc'd amortization
Gain (loss) on contingent rental*
Liability for lease payments
Interest expense
Cash
85.00
456.38
278.62
650.00
1,292.25
1,292.25
*difference between predicted and actual conti
Total
End of Year 1
Impact on net income
-3,640.00
-750.87
Carrying value of right-to-use asset
2,228.98
Carrying value of liability to make lease payments
-2,329.85
Cumulative cash paid
-650.00
Net related balance sheet accounts
-750.87
Change in owners equity
-750.87
Scenario 2 (no significant changes in contingent rent, ordinary annuity)
Continually revised table
type=
0.00
r=
10%
LT=
5.00
fv=
0.00
Fixed
Payment
Period
0
1
2
3
4
5
1
500
500
500
500
500
2500
Contingent
payment
235
150
210
230
250
1075
Total
payment
735
650
710
730
750
3575
Interest
278.622828
206.041364
176.565992
126.693806
68.182005
856.105995
Principal
Reduction
456.377172
443.958636
533.434008
603.306194
681.817995
2718.894
85.00
456.38
278.62
650.00
1,292.25
1,292.25
*difference between predicted and actual conti
Total
End of Year 1
Impact on net income
-3,640.00
-750.87
Carrying value of right-to-use asset
2,228.98
Carrying value of liability to make lease payments
-2,329.85
Cumulative cash paid
-650.00
Net related balance sheet accounts
-750.87
Change in owners equity
-750.87
Difference from "close enough" assumption
As percent of originally predicted payment
0.00
0%
es Level
Expected
Value
35000
30%
10,500.00
23,500.00
235.00
500.00
735.00
Balance
2786.22828
2329.8511
1827.83621
1275.61983
668.181818
0
Actual
Difference to
contingent
NI
rent
150.00
210.00
230.00
250.00
300.00
1140
85.00
25.00
5.00
-15.00
-65.00
35
End of Year 2
debit
credit
557.25
557.25
End of Year 3
debit
credit
557.25
557.25
25.00
502.01
232.99
5.00
552.22
182.78
710.00
730.00
1,292.25
1,292.25
1,292.25
1,292.25
en predicted and actual contingent rentals
End of Year 2
End of Year 3
-765.23
-735.03
1,671.74
1,114.49
-1,827.84
-1,275.62
-1,360.00
-2,090.00
-1,516.10
-2,251.13
-765.23
-735.03
Adjustment
269.44
-149.20
-34.71
-18.19
Balance
2786.22828
2060.41364
1765.65992
1266.93806
681.82005
0.002055
Remaining
payments
4.00
3.00
2.00
1.00
0.00
Revised
Payment
650.00
710.00
730.00
750.00
End of Year 4
debit
credit
557.25
557.25
15.00
607.44
127.56
1,307.25
750.00
1,307.25
End of Year 4
-699.81
557.25
-668.18
-2,840.00
-2,950.94
-699.81
Balance
should be
2,060.41
1,765.66
1,266.94
681.82
0.00
Prior balance
2,329.85
1,616.46
1,232.23
663.63
Beginning of Year 2
debit
credit
269.44
269.44
269.44
269.44
1,959.55
Beginning of Year 3
debit
credit
149.20
149.20
149.20
149.20
1,618.86
Beginning of Year 4
debit
credit
34.71
34.71
34.71
34.71
1,113.95
End of Year 2
debit
credit
489.89
489.89
End of Year 3
debit
credit
539.62
539.62
End of Year 4
debit
credit
556.98
556.98
60.00
443.96
206.04
20.00
533.43
176.57
20.00
603.31
126.69
710.00
730.00
1,199.89
1,199.89
1,269.62
1,269.62
en predicted and actual contingent rentals
End of Year 2
End of Year 3
-755.93
-736.19
1,469.66
1,079.24
-1,616.46
-1,232.23
-1,360.00
-2,090.00
-1,506.80
-2,242.98
-755.93
-736.19
9.30
1%
-1.16
0%
1,306.98
750.00
1,306.98
End of Year 4
-703.67
556.98
-663.63
-2,840.00
-2,946.65
-703.67
-3.86
-1%
End of Year 5
Totals
debit
credit
557.25
2,786.23
557.25 -2,786.23
65.00
668.18
66.82
1,357.25
-35.00
2,786.23
888.77
800.00 -3,640.00
1,357.25
0.00
End of Year 5
-689.06
0.00
0.00
-3,640.00
-3,640.00
-689.06
Actual
Difference to
contingent
NI
rent
150.00
210.00
230.00
250.00
300.00
1140
85.00
-60.00
-20.00
-20.00
-50.00
-65
Beginning of Year 5
Totals
debit
credit
18.19
2,718.90
18.19 -2,718.90
18.19
18.19
0.00
575.17
End of Year 5
Totals
debit
credit
575.17
2,718.90
575.17 -2,718.90
50.00
681.82
68.18
1,375.17
65.00
2,718.89
856.11
800.00 -3,640.00
1,375.17
0.00
End of Year 5
-693.35
0.00
0.00
-3,640.00
-3,640.00
-693.35
-4.28
-1%
Scenario 1 Scenario 2
No
Adjusted
Adjustment
Year 3
Diff from
Diff from
perfect
perfect
8.5%
2.3%
0.1%
-2.7%
-11.2%
8.5%
3.4%
-0.1%
-3.3%
-11.9%
-0.6%
-0.7%
10000
10%
1,000.00
20000
60%
12,000.00
Period
0
1
2
3
4
5
1
500
500
500
500
500
2500
Contingent
payment
235
235
235
235
235
1175
Total
payment
735
735
735
735
735
3675
Interest
278.622828
232.98511
182.783621
127.561983
66.8181818
888.771724
Principal
Reduction
456.377172
502.01489
552.216379
607.438017
668.181818
2786.22828
End of Year 1
debit
credit
557.25
557.25
Amortization expense
Acc'd amortization
Gain (loss) on contingent rental*
Liability for lease payments
Interest expense
Cash
265.00
456.38
278.62
1,000.00
1,557.25
1,557.25
*difference between predicted and actual conti
Total
End of Year 1
Impact on net income
-5,650.00
-1,100.87
Carrying value of right-to-use asset
2,228.98
Carrying value of liability to make lease payments
-2,329.85
Cumulative cash paid
-1,000.00
Net related balance sheet accounts
-1,100.87
Change in owners equity
-1,100.87
Roughtly based on Example 9 in the 2009 Preliminary Views document
A lessee enters into a five-year lease of a retail store. The lease is non-cancellable and the
lessee has no option to extend the lease. The lessee is required to make fixed annual
payments of CU500. In addition, the lessee is required to make payments equal to
1 percent of sales from the leased store. The lessee forecasts the following sales for the store
and assigns each outcome a probability:
Sales Level
Total forecast sales years 1 5 (CU)
Probability that forecast sales will occur
Probability weighted expected sales
Total contingent rentals 1% of forecast sales (CU)
Total fixed rentals years 1 5 (CU) - at CU 500 per year
Total estimated rentals years 1 5 (CU)
Assume actual sales are as follows:
cont rent @
Year
sales
1%
1
50,000.00
500.00
2
55,000.00
550.00
3
65,000.00
650.00
4
70,000.00
700.00
5
75,000.00
750.00
315,000.00
3,150.00
10000
10%
1,000.00
20000
60%
12,000.00
Fixed
Payment
Period
0
1
2
3
4
5
1
Contingent
payment
500
500
500
500
500
2500
Total
payment
235
500
550
650
700
2635
735
1000
1050
1150
1200
5135
Interest
278.622828
316.986655
261.119779
199.586534
109.091097
1165.40689
Principal
Reduction
456.377172
683.013345
788.880221
950.413466
1090.9089
3969.59311
Amortization expense
Acc'd amortization
Gain (loss) on contingent rental*
Liability for lease payments
Interest expense
Cash
End of Year 1
debit
credit
557.25
557.25
265.00
456.38
278.62
1,000.00
1,557.25
1,557.25
*difference between predicted and actual conti
Total
End of Year 1
Impact on net income
-5,650.00
-1,100.87
0.00
Difference between "no adjustment" and "continuous adjustment"
170.12
Difference between "continuous adjustment" and "perfect forecast"
170.12
Difference between "no adjustment" and "perfect forecast"
es Level
Expected
Value
35000
30%
10,500.00
23,500.00
235.00
500.00
735.00
uity payments
Balance
2786.22828
2329.8511
1827.83621
1275.61983
668.181818
0
uity payments
Actual
Difference to
contingent
NI
rent
500.00
550.00
650.00
700.00
750.00
3150
-265.00
-315.00
-415.00
-465.00
-515.00
-1975
End of Year 2
debit
credit
557.25
557.25
315.00
502.01
232.99
End of Year 3
debit
credit
557.25
557.25
415.00
552.22
182.78
1,050.00
1,150.00
1,607.25
1,607.25
1,707.25
1,707.25
en predicted and actual contingent rentals
End of Year 2
End of Year 3
-1,105.23
-1,155.03
1,671.74
1,114.49
-1,827.84
-1,275.62
-2,050.00
-3,200.00
-2,206.10
-3,361.13
-1,105.23
-1,155.03
Expected
Value
23,500.00
235.00
500.00
735.00
End of Year 4
debit
credit
557.25
557.25
465.00
607.44
127.56
1,757.25
1,200.00
1,757.25
End of Year 4
-1,149.81
557.25
-668.18
-4,400.00
-4,510.94
-1,149.81
Adjustment
-840.02
-124.34
-173.55
-45.46
Balance
2786.22828
3169.86655
2611.19779
1995.86534
1090.91097
0.002065
Remaining
payments
4
3
2
1
0
Revised
Payment
1,000.00
1,050.00
1,150.00
1,200.00
Balance
should be
3,169.87
2,611.19
1,995.87
1,090.91
0.00
Prior balance
2,329.85
2,486.85
1,822.32
1,045.45
Beginning of Year 2
Beginning of Year 3
Beginning of Year 4
debit
credit
debit
credit
debit
credit
840.02
124.34
173.55
840.02
124.34
173.55
840.02
840.02
124.34
124.34
173.55
173.55
3,069.00
2,426.09
1,790.94
divided by 4
divided by 3
divided by 2
End of Year 2
debit
credit
767.25
767.25
50.00
683.01
316.99
End of Year 3
debit
credit
808.70
808.70
100.00
788.88
261.12
1,050.00
1,150.00
1,817.25
1,817.25
1,958.70
1,958.70
en predicted and actual contingent rentals
End of Year 2
End of Year 3
-1,134.24
-1,169.82
-29.01
-14.79
79.12
-24.86
108.13
-10.07
End of Year 4
debit
credit
895.47
895.47
50.00
950.41
199.59
2,095.47
1,200.00
2,095.47
End of Year 4
-1,145.06
4.75
-85.33
-90.08
End of Year 5
Totals
debit
credit
557.25
2,786.23
557.25 -2,786.23
515.00
668.18
66.82
1,807.25
1,975.00
2,786.23
888.77
1,250.00 -5,650.00
1,807.25
0.00
End of Year 5
-1,139.06
0.00
0.00
-5,650.00
-5,650.00
-1,139.06
Actual
Difference to
contingent
NI
rent
500.00
550.00
650.00
700.00
750.00
3150
-265.00
-50.00
-100.00
-50.00
-50.00
-515
Beginning of Year 5
Totals
debit
credit
45.46
3,969.60
45.46 -3,969.60
45.46
45.46
0.00
940.93
divided by 1
End of Year 5
Totals
debit
credit
940.93
3,969.60
940.93 -3,969.60
50.00
1,090.91
109.09
2,190.93
515.00
3,969.59
1,165.41
1,250.00 -5,650.00
2,190.93
0.00
End of Year 5
-1,100.02
39.04
-139.06
-178.10
0.00
0.00
0.00
Scenario 4
Adjusted
Year 3
Diff from
perfect
13.4%
6.5%
-2.2%
-8.1%
-14.5%
-1.0%
10000
10%
1,000.00
20000
60%
12,000.00
Fixed
Payment
500
500
500
500
500
2500
Contingent
payment
0
235
235
235
235
235
1175
Total
payment
500
735
735
735
735
235
3675
Interest
0
247.576761
198.834438
145.217881
86.2396694
21.3636364
699.232386
Principal
Reduction
500
487.423239
536.165562
589.782119
648.760331
213.636364
2975.76761
Cash
2,975.77
2,975.77
500.00
2,975.77
Amortization expense
Acc'd amortization
Gain (loss) on contingent rental*
Liability for lease payments
Interest expense
Liability for lease payments
Cash (final cont. rent payment)
265.00
487.42
247.58
1,000.00
1,595.15
1,595.15
*difference between predicted and actual conti
Total
End of Year 1
Impact on net income
-5,650.00
-1,107.73
Carrying value of right-to-use asset
2,380.61
Carrying value of liability to make lease payments
-1,988.34
Cumulative cash paid
-1,000.00
Net related balance sheet accounts
-607.73
Change in owners equity
-607.73
10000
10%
1000
10
50.00
60.00
PVELP
20000
60%
12000
120
300.00
420.00
Fixed
n=
i=
5.00
10%
2.00
3.00
4.00
5.00
55,000.00
550.00
pmt=
500.00
65,000.00
650.00
fv=
0.00
70,000.00
700.00
Ann due
1.00
75,000.00
750.00
PVELP=
2,084.93
315,000.00
3,150.00
2,975.77
This is more than TWICE the actual in the "no significant change" version
Fixed
Payment
500
500
500
500
500
0
2500
Estimated
Contingent
payment
Total
payment
0
235
235
700
700
700
2570
500
735
735
1200
1200
700
5070
Interest
0
247.576761
198.834438
260.856499
166.942149
63.6363636
937.84621
Principal
Reduction
500
487.423239
536.165562
939.143501
1033.05785
636.363636
4132.15379
265.00
487.42
247.58
1,000.00
1,595.15
1,595.15
*difference between predicted and actual conti
Total
Impact on net income
-5,650.00
Carrying value of right-to-use asset
Carrying value of liability to make lease payments
Cumulative cash paid
Net related balance sheet accounts
Change in owners equity
Difference from "close enough" assumption
End of Year 1
-1,107.73
2,380.61
-2,988.34
-500.00
-1,107.73
-1,107.73
0.00
es Level
35000
30%
10,500.00
Expected
Value
100%
23,500.00
235.00
500.00
735.00
Beginning of Year 3
debit
credit
1,050.00
Beginning of Year 4
debit
credit
1,150.00
1,000.00
2,380.61
1,000.00
1,000.00
End of Year 2
debit
credit
595.15
595.15
315.00
536.17
198.83
1,050.00
1,785.46
1,050.00
1,050.00
End of Year 3
debit
credit
595.15
595.15
415.00
589.78
145.22
1,050.00
1,150.00
1,190.31
End of Year 4
debit
credit
595.15
595.15
465.00
648.76
86.24
1,150.00
1,645.15
1,645.15
1,745.15
1,745.15
en predicted and actual contingent rentals
End of Year 2
End of Year 3
-1,108.99
-1,155.37
1,785.46
1,190.31
-1,452.18
-862.40
-2,050.00
-3,200.00
-1,716.72
-2,872.09
-1,108.99
-1,155.37
1,200.00
1,795.15
1.00
2,500.00
1,795.15
End of Year 4
-1,146.39
595.15
-213.64
-4,400.00
-4,018.48
-1,146.39
1,150.00
1,150.00
2,800.00
5.00
Total
payment
500.00
1,200.00
1,200.00
1,200.00
1,200.00
700.00
6,000.00
235.00
0.00
0.00
890.83
payments
UITY DUE
Adjustment
Balance
2975.76761
2475.76761
1988.34438
-1,156.39 2608.56499
1669.42149
636.363636
0
Revision 1,
predicted
payments
2,608.56
1,200.00
1,200.00
700.00
present
value of
revised
pymts
2,608.56
Balance
before
adjustment
1,452.18
Adjustment
needed
1,156.39
rounding error
payments
Beginning of Year 2
debit
credit
Beginning of Year 3
debit
credit
1,000.00
1,000.00
1,000.00
2,380.61
1,000.00
End of Year 2
debit
credit
595.15
595.15
315.00
536.17
198.83
1,050.00
1,050.00
1,050.00
1,785.46
1,050.00
Beginning of Year 4
debit
credit
1,156.39
1,156.39
1,150.00
1,150.00
2,306.39
2,306.39
2,346.69
End of Year 3
debit
credit
595.15
595.15
End of Year 4
debit
credit
1,173.35
1,173.35
50.00
0.00
939.14
260.86
1,050.00
1,645.15
1,645.15
1,795.15
en predicted and actual contingent rentals
1,033.06
166.94
1,150.00
1,795.15
1,200.00
2,373.35
2,373.35
End of Year 2
-1,108.99
1,785.46
-2,502.18
-1,500.00
-2,216.72
-1,108.99
End of Year 3
-806.01
1,190.31
-1,663.04
-2,550.00
-3,022.73
-806.01
End of Year 4
-1,340.29
1,173.35
-1,836.36
-3,700.00
-4,363.02
-1,340.29
0.00
349.36
-193.90
Beginning of Year 5
debit
credit
1,200.00
Totals
2,975.77
1,924.23
-2,975.77
1,200.00
595.15
1,200.00 -4,900.00
1,200.00
0.00
End of Year 5
Totals
debit
credit
595.15
2,975.77
595.15 -2,975.77
515.00
213.64
21.36
1,345.15
1,975.00
2,475.77
699.23
-4,400.00
750.00
-750.00
1,345.15
0.00
End of Year 5
-1,131.52
0.00
0.00
-5,150.00
-5,650.00
-5,150.00
-1,131.52
type=
fv=
Interest
1.00
0.00
Principal
Reduction
0.00
423.85
346.23
260.86
166.94
63.64
500.00
776.15
853.77
939.14
1,033.06
636.36
1,197.88
4,102.12
4,738.48
Balance
4,738.48
4,238.48
3,462.33
2,608.56
1,669.42
636.36
0.00
Actual
Total
Difference to
contingent
actual
NI
rent
cash flows
500.00
550.00
650.00
700.00
750.00
3,150.00
-265.00
-315.00
50.00
0.00
-50.00
-580.00
Beginning of Year 5
debit
credit
1,200.00
1,200.00
1,173.35
500.00
1,000.00
1,050.00
1,150.00
1,200.00
750.00
5,650.00
Totals
4,132.15
-3,632.15
1,200.00 -4,900.00
4,400.00
1,200.00
0.00
End of Year 5
Totals
debit
credit
1,173.35
4,132.15
1,173.35 -4,132.15
50.00
636.36
63.64
750.00
2,673.35
580.00
3,632.15
937.85
750.00 -4,400.00
750.00
-750.00
2,673.35
0.00
4,132.15
End of Year 5
-1,286.98
0.00
0.00
-5,650.00
-5,650.00
-5,650.00
-1,286.98
-155.47
Scenario 6
Adjusted
end of Yr 3
Diff from
perfect
-25.1%
13.2%
33.8%
-17.0%
-14.5%
-1.9%
10000
10%
1,000.00
20000
60%
12,000.00
At inception of lease:
PVELP
Fixed
n=
5.00
i=
10%
pmt=
500.00
fv=
0.00
Ann due
1.00
PVELP=
2,084.93
2,975.77 Or use NPV for cash flows
displayed in table:
Fixed
Payment
500
500
500
500
500
2500
Contingent
payment
0
235
235
235
235
235
1175
Total
payment
500
735
735
735
735
235
3675
Interest
0
247.576761
198.834438
145.217881
86.2396694
21.3636364
699.232386
Principal
Reduction
500
487.423239
536.165562
589.782119
648.760331
213.636364
2975.76761
Cash
Adjusted carrying value for right-to-use asset
2,975.77
2,975.77
500.00
2,975.77
Amortization expense
Acc'd amortization
Gain (loss) on contingent rental*
Liability for lease payments
Interest expense
Liability for lease payments
Cash (final payment of cont. rent)
End of Year 1
debit
credit
595.15
595.15
85.00
487.42
247.58
650.00
1,330.15
1,330.15
*difference between predicted and actual conti
Total
End of Year 1
Impact on net income
-3,640.00
-757.73
Carrying value of right-to-use asset
2,380.61
Carrying value of liability to make lease payments
-2,638.34
Cumulative cash paid
-500.00
Net related balance sheet accounts
-757.73
Change in owners equity
-757.73
10000
10%
1000
10
50.00
60.00
20000
60%
12000
120
300.00
420.00
2
3
4
5
21,000.00
23,000.00
25,000.00
30,000.00
114,000.00
210.00
230.00
250.00
300.00
1,140.00
PVELP
n=
i=
pmt=
fv=
Ann due
PVELP=
2,975.77
Fixed
5.00
10%
500.00
0.00
1.00
2,084.93
Fixed
Payment
500
500
500
500
500
0
2500
Estimated
Contingent
payment
Total
payment
0
235
235
250
250
250
1220
500
735
735
750
750
250
3720
Interest
0
247.576761
198.834438
148.948159
88.8429752
22.7272727
706.929606
Principal
Reduction
500
487.423239
536.165562
601.051841
661.157025
227.272727
3013.07039
85.00
487.42
247.58
650.00
1,330.15
1,330.15
Total
-3,640.00
0.00
0%
es Level
35000
30%
10,500.00
Expected
Value
100%
23,500.00
235.00
500.00
735.00
Beginning of Year 3
debit
credit
710.00
Beginning of Year 4
debit
credit
730.00
650.00
2,380.61
650.00
650.00
End of Year 2
debit
credit
595.15
595.15
710.00
1,785.46
End of Year 3
debit
credit
595.15
595.15
25.00
536.17
198.83
710.00
710.00
5.00
589.78
145.22
710.00
730.00
1,190.31
End of Year 4
debit
credit
595.15
595.15
15.00
648.76
86.24
730.00
1,330.15
1,330.15
1,330.15
1,330.15
en predicted and actual contingent rentals
End of Year 2
End of Year 3
-768.99
-735.37
1,785.46
1,190.31
-2,162.18
-1,592.40
-1,150.00
-1,860.00
-1,526.72
-2,262.09
-768.99
-735.37
730.00
730.00
750.00
1,345.15
1,345.15
End of Year 4
-696.39
595.15
-963.64
-2,590.00
-2,958.48
-696.39
es Level
35000
30%
10500
105
150.00
255.00
2,500.00
1,000.00
3,750.00
Contingent
5.00
10%
235.00
0.00
0.00
890.83
due payments
UITY DUE
Adjustment
Balance
2975.76761
2475.76761
1988.34438
-37.30 1489.48159
888.429752
227.272727
-1.279E-012
Revision 1,
predicted
payments
1,489.48
750.00
750.00
250.00
present
value of
revised
pymts
1,489.48
Balance
before
adjustment
1,452.18
Adjustment
needed
37.30
rounding error
due payments
Beginning of Year 2
debit
credit
Beginning of Year 3
debit
credit
650.00
650.00
650.00
2,380.61
650.00
End of Year 2
debit
credit
595.15
595.15
-25.00
536.17
198.83
710.00
710.00
710.00
1,785.46
End of Year 3
debit
credit
595.15
595.15
End of Year 4
debit
credit
613.80
613.80
20.00
0.00
601.05
148.95
710.00
1,305.15
710.00
1,305.15
Beginning of Year 4
debit
credit
37.30
37.30
730.00
730.00
767.30
767.30
1,227.61
661.16
88.84
730.00
1,345.15
1,345.15
750.00
1,363.80
1,363.80
11.27
2%
End of Year 4
-702.65
613.80
-977.27
-2,590.00
-2,953.47
-702.65
-6.25
-1%
Beginning of Year 5
debit
credit
750.00
Totals
2,975.77
364.23
750.00
595.15
750.00 -3,340.00
750.00
0.00
End of Year 5
Totals
debit
credit
595.15
2,975.77
595.15 -2,975.77
65.00
213.64
21.36
895.15
-35.00
2,475.77
699.23
-2,840.00
300.00
-300.00
895.15
0.00
End of Year 5
-681.52
0.00
0.00
-3,640.00
-3,640.00
-681.52
type=
fv=
Interest
0.00
0.00
Principal
Reduction
0.00
253.26
203.59
148.95
88.84
22.73
500.00
496.74
546.41
601.05
661.16
227.27
694.64
2,805.36
3,032.63
Balance
3,032.63
2,532.63
2,035.89
1,489.48
888.43
227.27
0.00
Actual
contingent
150.00
210.00
230.00
250.00
300.00
Diff dr/(cr)
85.00
25.00
20.00
0.00
-50.00
80.00
Beginning of Year 5
debit
credit
Actual
Cash Flows
500.00
650.00
710.00
730.00
750.00
300.00
3,140.00
Totals
3,013.07
750.00
750.00
613.80
750.00 -3,340.00
326.93
750.00
0.00
-3,640.00
End of Year 5
Totals
debit
credit
613.80
3,013.07
613.80 -3,013.07
50.00
227.27
22.73
300.00
1,213.80
-80.00
2,513.07
706.93
300.00 -2,840.00
300.00
-300.00
1,213.80
0.00
3,013.07
300.00
End of Year 5
-686.53
0.00
0.00
-3,640.00
-3,640.00
-686.53
-5.02
-1%
Scenario 8
Adjusted
end of Yr 3
Diff from
perfect
-29.5%
7.1%
8.0%
4.5%
2.6%
-1.5%