Class Synopsis

Financial Analyses of Federal Indian Realty Transactions

I.     Ordering a BIA Appraisal.

    1. Give all the Facts
    2. Proposed Use.
    3. Other important issues.
    1. Prior uses of the property
    2. Hazardous Waste. Underground Storage Tanks.
    3. Is property currently under lease? Lease conditions.

II.    Consumer Price Index and the Producer Price Index

    1. How to use the CPI and the PPI in adjusting lease rentals and other required adjustments.

III.   Industry Standards

    1. Evaluating a proposal based on Industry Standards.
    2. Robert Morris and Associates.

IV.   Ratios

    1. Return on Investment
    2. Current Ratio
    3. Quick Ratio
    4. Other Ratios
    5. Profitability Ratios
    6. Asset Utilization Ratios
    7. Working Capital Ratio
    8. Debt Utilization Ratios
    9. Loan to Value

V.    Standard Industrial Classification (SIC) Codes

    1. Industry Standards
    2. Business Information Centers

VI.    Financial Statements

    1. The Balance Sheet
    2. The Profit and Loss Statement (Income Statement)

VII.   Time Value of Money

    1. Future Value
    2. Annuity
    3. Sinking Fund Payments
    4. Present Value of a Future Amount
    5. Internal Rate of Return (IRR)
    6. Amortization

The class will include a trip to the Business Information Center to become familiar with the wealth of resources available in analyzing realty transactions.

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