Tract-PIE. Tract Development Property Investment Evaluation. Windows Version 7.4

Transcription

1 Tract-PIE Tract Development Property Investment Evaluation Windows Version 7.4 Distributed by Real Pro-Jections, Inc. 300 Carlsbad Village Drive Suite 108A, PMB 330 Carlsbad, CA (760) Developed by Glenn L. Gessay Advanced Micro Applications, Inc Hawk View Drive Encinitas, CA (760) Copyright Advanced Micro Applications, Inc. All Rights Reserved

2 Acknowledgment Tract-PIE makes use of the Prophit Application Interface, Modeling System and Processing Engine owned by Advanced Micro Applications, Inc.

3 TABLE OF CONTENTS Page INTRODUCTION Sampling of Tract-PIE Features System Flow Tract-PIE Reports Overview Cash Flow Forecast Loan Flow & Equity Participation Profit & Loss and Balance Sheet Forecast Sensitivity Matrix Budget Analysis Report Sales & Construction Planning Report Distribution Modification Multiple Investment Partners PLAN vs UPDATE Variance Report Cost Detail Planning Report Report Consolidations SAMPLE REPORT OUTPUT Primary Report Budget Analysis Report Executive Summary Report Sales & Construction Planning Report Cost Detail Planing Report Cost Detail Summary Report HOW TO USE Tract-PIE Selecting a Data Directory (Folder) for Tract-PIE Files Command Buttons Main Menu Primary Reports Command Button Detailed Planning Command Button Consolidations Command Button Auxiliary Reports Command Button View / Print Command Button Data Forms Command Button Goal Seeking Command Button Utilities Command Button Inputting and/or Calculating Assumptions Screen No Report References Automated Import Actuals Capability Data Entry Screens

4 Page Input Screens Menu Bar Commands File Command Report Command Edit Command CopyPrior, SpreadPrior, CurrTotal Commands Trends Command Calculator Command SelectScreen Command Unit Info Command Detail Sales Plan / Detail Accounts Command Help (F1) Command Display Grid Menu Bar Commands Print, Print Preview Commands GoTo Command Options Command Report Family Command Custom Specs Commands Report Periods Command Font Size Command Format Cells Command Sensitivity Matrix Command Goal Seek Command Graphs Command Close Command DETAILED EXPLANATION of INPUT ITEMS (Primary Report) Screen #1 -- Units For Sale (Product Mix) Screen #2 -- In-Progress Closings & Completions & Construction Cash Screen #3 -- Lot Premiums / Options Rev / Sales Prices / Price Escalation Screen #4 -- Unit Sales Forecast Screen #5 -- Deposit Pattern-%'s / Sales Revenue Overrides Screen #6 thru #7 -- To-Be-Named Revenue Items Screen #8 -- Direct Construction Costs & Square Footage Screen #9 -- Contingency / Constr Cost Escalator / Model Upgrade & Recovery Screen #10 -- Direct Construction Scheduling Screen #11 -- Override Direct Construction / Options Cost Screen #12 -- Inflation (% s) / Indirect Constructn / Association Dues. 4-9 Screen #13 -- Real Estate Tax Screen #14 -- Warranty / Commissions Screen #15 -- Closing Costs / Buydowns / Discounts / To-Be-Named Sales Cost

5 Page Screen #16 -- Land & Acquisition Screens #17 thru #19-- Land Option Deposit / Off-Sites / On-Sites / Common Areas / Utility Deposits Screen #20 -- Marketing / Commitment Fee Screens #21 thru #25 -- To-Be-Named Costs (#1 - #10) Screen #26 -- Management Fees (Investor & Developer) Screen #27 -- Discount-% / Residual Val Profit-% / Index Int-% / Cash Reserve Screen #28 -- Beginning Loan Balances (for projects in progress) / Override COS Screen #29 -- Loan Draw Assignments Screens #30 thru #31 -- Purchase Note Screens #32 thru #34 -- A&D Loan Screens #35 thru #37 -- Construction Loan Screen #38 -- Revolver Construction Loan Screens #39 thru #40 -- Misc (To-Be-Named) Loan Screens #41 thru #44 -- Equity Participation REPORT LOGIC Primary Report: Sequence-of-Events Logic Revenue Receipts and Selling Costs Logic Disbursements Logic Discounted Cash Flow Analysis Purchase Note Logic A&D Loan Logic Construction Loan(s) Logic Revolver Loan Mode Logic Misc. (To-Be-Named) Loan Logic Equity Participation Logic Profit & Loss and Balance Sheet Logic Budget Analysis Report Logic Preliminary Options before Calculating the Budget Report Sales & Construction Planning Report Logic Cost Detail Planning Report Logic and Input The Data Input Screens Two Types of Report Output Report Line Items The Consolidation Feature The Job Cost Link File

6 INDEX Page ASSORTED TOPICS Glossary of Terms Retention of Budget Totals in the Primary Report Cost Spread and/or Seasonal Sales Percentages Equity Funding Front Loading Line of Credit Financing at the Consolidation Level Template File for Primary Report File Naming Convention

7 Section 1: Introduction Tract-PIE (Tract Development Property Investment Evaluation) is an easy-to-use and comprehensive software package that addresses the unique planning requirements of the residential real estate development industry (single family homes, condominiums, townhomes, finished lots, etc). It provides the capability of easily generating detailed and accurate cash flow, loan flow, profit & loss, balance sheet, and budget analysis projections for single and/or multiple phase development projects. The forecasts are based on fundamental input variables, and may reflect projects in the initial planning stages or already underway. Tract-PIE serves the needs of builders, developers, lenders, investors, appraisers, and consultants. Sampling of Tract-PIE Features Screen-by-screen input routines to guide you in the creation or modification of all input assumptions. Time periods (report columns) may represent months, quarters, or years. Annual interest rates and monthly sales rates are converted automatically. Appropriate column labels are generated automatically corresponding to the start date. Retention of budget totals wherein forecast values for revenue and cost items are automatically adjusted when actual values are entered so as to maintain the total for the line item as defined by the basic inputs. A special print routine to present quarterly sub-totals and a grandtotal for reports calculated using monthly time periods. The ability to print out a screen-by-screen data input form or to print your input assumptions for a given project. A combination of pre-defined revenue and cost items as well as items for which you supply the line titles. The ability to assign each cost item to a particular loan or to indicate that is not drawable. Accommodates a product mix of up to 10 design types, and/or may involve lot sales. Stored factors to represent seasonality of sales. Direct Construction cash flows time-staged in accordance with input construction schedule or scheduled in correlation with unit sales. Cash flows are spread using stored spread percentages which you may modify. The ability to override all model calculations on a period-by-period basis. Pre-financing and after-financing discounted cash flow measures (net present value and internal rate of return). Introduction 1-1

8 Automatic calculation of equity financing which may reflect wholly owned or joint venture projects. Returns of capital are indicated as cash is available, and preferred returns on capital may be included. Maximum flexibility is provided to control all aspects of equity participation. Optional feature of a time-phased consolidation of Cash Flow / Loan Flow / P & L / Balance Sheet reports in order to combine reports for different product types, unique financing, or multiple projects. System Flow Tract-PIE is a comprehensive system of interrelated components. This structure lends great flexibility in the planning, analysis, and tracking process. It is important to note that not all of the components need be used to get meaningful results from the system. The Primary Report is the heart of Tract-PIE. It is not necessary to use any of the other reporting components although much value can be derived from them. The Primary Report incorporates all of the input needed to calculate the sequence-of-events, cash flow, loan flow, equity participation, profit & loss, and balance sheet for a multiple phase project. Optional Detailed Planning models are available for use at any time during the planning process. These consist of the Sales & Construction Planning model to perform more detailed planning pertaining to the scheduling, pricing and costing of your project in terms of unit sales and direct construction, and the Cost Detail Planning models wherein you define your chart of accounts for any major cost category within the Primary Report followed by performing budgetary and disbursement planning for each account. The summarized results of any of these detailed reports may be accessed automatically as input into the Primary Report simply by providing the name of the report on the Report References screen within the Primary Report (Full Screens) input routine. Other Tract-PIE reports are produced by commands that rely on the existence of one or more Primary Reports. The Budget Analysis Report and the Executive Summary are companion reports based on a Primary Report that provide useful summary and analysis information. Additional optional reports are the Plan vs Update Variance Report, the Distribution Modification Report, and Consolidated Reports. Introduction 1-2

9 Tract-PIE Reports -- Overview The descriptions below are sections of the Primary Report. Cash Flow -- sales revenues and cash requirements over the months of a development project based on a derived "sequence of events" for critical activities such as sales, closings, construction starts and completions, and standing inventory. Loan Flow & Equity Participation -- a detailed forecast of project financing including any combination of a purchase note, an acquisition & development loan, a construction loan (may actually represent multiple construction loans), and equity participation to cover unfunded cash requirements either as a wholly owned or a joint venture project. Profit & Loss -- a month-by-month profit & loss proforma using generally accepted accounting principles. Balance Sheet -- a forecast of the project balance sheet displaying periodic balances for cash, capitalized costs, loans, equity, etc. The reports listed below are all based on the existence of at least one Primary Report. The Budget Analysis Report and the Executive Summary Report correlate directly with a single Primary Report and should be considered as part of any presentation package based on the Primary Report. Budget Analysis Report -- presents the results from a Primary Report showing all revenues, costs and profitability by Plan Type, Grand Total, Per Unit Average, Per Square Foot, Percent of Sales, and Percent of Cost. This report also provides some other key analytical information. Executive Summary Report -- Condenses the key results from a Primary Report or Consolidated Report onto a single page with separate highlight boxes for product summary, project cash flow summary, profit summary, loan finance summary, equity participation summary, and absorption summary. You select the name of the Primary Report or Consolidated Report, and Tract-PIE will take care of the rest. Distribution Modification -- allows for capabilities beyond the scope of the Primary Report or Consolidated Report for distribution of cash to equity participants. Multiple Partners -- allows for breaking up the equity participation for either the Developer or the Investor entity into as many as three distinct partners. PLAN vs UPDATE Variance Report -- Produces a report displaying the line-by-line variances between one Primary Report representing the original "Plan" and a second Primary Report containing updated actual results through some specific period in the project time-line. The reports listed below are Detailed Planning Reports: The aggregate results from any of these reports may be passed automatically to a Primary Report by selecting the report name on the Report References screen during input for the Primary Report (Full Screens). Introduction 1-3

10 Sales & Construction Planning Report -- provides separate modules allowing you to break up your planning process in any way that you wish in order to gain detailed visibility pertaining to sales and construction scheduling and cash flow. Cost Detail Planning Report -- Each of the major disbursement line items contained in the Primary Report may be detailed out into as many as 150 individual accounts that you specify. Budgetary amounts and disbursement patterns are planned separately for each account. Report Consolidations -- Tract-PIE offers several options for report consolidation. Reports based on time-periods may be consolidated on a time-phased basis, while Budget Analysis Reports may be combined on a "cut and paste" basis. Cash Flow Forecast The Cash Flow Forecast displays the results of a detailed process by which all cost and income items are spread across the months (or quarters) of the project. The project may include an unlimited number of direct construction starts for production units in addition to model units. Up to 10 design types with separate costs and sales prices may be included in the product mix. Lot Premiums and Optional Extras are also included. The project may consist of lot sales as well. The model performs hundreds of calculations, and a key driving factor is the "sequence of events" relating to planned starts for various construction and sales activities as well as the corresponding start-to-finish intervals for the construction activities. Maximum input flexibility is provided for controlling these events. The model includes pre-defined revenue and cost categories as well as several that allow you to provide your own line titles. Based on an input for average monthly sales rate, the model automatically produces a seasonally adjusted monthly sales projection. You may easily alter the seasonal adjustment factors stored by the system. This sales projection may reflect the results of a pre-sale period (prior to the grand opening month) during which sales are subject to cancellation. Optionally, you may provide periodic unit sales as an overriding entry. The schedule of unit closings follows the unit sales by the indicated escrow period, but limited by the availability of completed inventory. Tract-PIE features the use of scheduled-factoring, a unique capability that automatically timephases the cash flows resulting from the start-up schedules for direct construction. The timing of the direct construction starts may be either user-defined or automatically scheduled in correlation to unit sales. The start-to-finish cycle for direct construction starts determines how the dollars will be spread in accordance with stored spread factors or, optionally, using factors that you enter specifically for this Primary Report. The Cash Flow Forecast clearly displays the project "sequence of events" and cash flows for sales revenue and all cost categories. The net cash flow before financing is then displayed, and becomes the basis for the pre-financing discounted cash flow analysis consisting of Net Present Value, Internal Rate of Return, and Land Residual Value/Cash. Introduction 1-4

11 Loan Flow & Equity Participation Tract-PIE performs detailed analyses for any combination of a Purchase Note for the acquisition of the land, an Acquisition & Development Loan for the completion of the finished lots, a Construction Loan which may actually represent several construction loans on a traditional basis or a Revolver type loan facility, and Equity Financing to cover the net funding requirements. You may activate any or all of the loan categories as appropriate for the project. The amount of each loan may be determined as an input loan amount, as a percentage of costs assigned to the loan, or as a percent of sales. Each loan is subject to a separate loan fee percentage and interest rate. The interest rate may be a stated rate or may fluctuate as a stated number of points over a prediction for the index rate. Interest reserve amounts may be stated for each loan. The interest reserve will be withheld from drawable funds, and will be used to cover interest costs until the reserve is depleted. Optionally, you may request that interest draws be made without stating a specific interest reserve amount. Loan draws are made in accordance with the forecast of drawable cash flows assigned to the loan. It is an easy matter to override the loan draw amount or to provide a positive or negative increment to add to the calculated loan draw for any period. Any cash flows assigned to a particular loan that has not been activated will automatically be assigned to the subsequent loan category. The model provides flexibility with regard to stating the source of repayment of the loans. It is an easy matter to set up the normal sequence of loans making automatic release payments on prior loans so that no two loans are secured by the same property at the same time. The timing and amounts for the repayment schedules are handled automatically once the source of repayment is indicated. Of course, all loan draw and repayment values may be specifically overridden by input on a period-by-period basis. The Equity Financing category covers net funding requirements so as to maintain a cash balance of zero (or a stated cash reserve amount) until positive cash flows are available to repay the equity balance(s) and any return(s) on equity. Any remaining cash is distributed as available. The equity funding and distributions of cash may be on the part of the Developer alone (wholly owned project) or may represent a joint venture participation between the Developer and the Investor partner. A maximum of flexibility is provided to alter the default rules that apply to the joint venture participation. A cash flow analysis section summarizes the net cash flow before financing, and the loan fees, interest, draws, and repayments for all loans in aggregate. The report then displays net cash flow after financing, cash balance, loans outstanding, maximum equity requirement, and maximum loan exposure. The loan flow forecast section of the report shows a summary for each loan activated. A summary for each equity partner is also displayed including the net present value and internal rate of return for the cash participation. Introduction 1-5

12 Profit & Loss and Balance Sheet Forecast The Profit & Loss Forecast produces a period-by-period income statement for the project based on generally accepted accounting principles. Commissions, Closing Costs, Buydowns, Discounts and Marketing/Advertising are expensed directly as incurred at closes of escrow. All other costs are capitalized and posted as Cost of Sales when sales occur based on a calculated ratio of total capitalized costs to total sales revenue. Balance Sheet assets include cash as well as capitalized cost balances. Liabilities and capital include all loan balances, accrued property tax, warranty reserve, net cash invested, and cumulative profit. Sensitivity Matrix: This analysis begins with a Primary Report that is loaded in the display grid. This Primary Report is considered as the Base Case. You initiate the analysis by simply clicking the Sensitivity Matrix selection on the menu bar in the display grid. The Sensitivity Matrix form then appears offering you a selection of different variables that you wish to isolate for your sensitivity analysis. After you have selected your desired matrix variable, you will indicate the number of scenarios (from 1 to 12) that you wish to include in the matrix, followed by entering the incremental adjustments for your scenarios. The resulting report presents report columns with key results for the Base Case and for each scenario. Budget Analysis Report The Budget Analysis Report accesses its input information from a corresponding Primary Report, and presents each line item with a separate column for each Plan Type in the product mix and additional columns for Grand Total, Per Unit Average, Per Square Foot, Percent of Sales, and Percent of Cost. Tract-PIE calculates costs for each budgeted cash flow line item and allocates them to each plan type on a per-unit basis. The default allocation method is based on per unit average, but alternative allocation methods of relative sales value or relative square footage may be triggered separately for each line item, if desired. Each column presents per-unit square footage, average sales revenue, number of model units, number of production units, per-unit cost allocations, and per-unit net profit. The report includes a Budget Analysis page which displays summary information on a planby-plan and grand total basis. This section presents key profit and plan mix ratios as well as stating sales price and construction cost on a per-square-foot basis. Sales & Construction Planning Report Although flexibility for sales and construction planning is part of the Tract-PIE Primary Report, a stand-alone Sales & Construction Planning option is available for much more detailed planning. This menu option provides separate modules allowing you to break up your planning process in any way that you wish in order to gain detailed visibility pertaining to sales and construction scheduling and cash flow. You identify each module using your own terminology. The units represented in the module may comprise a production phase, a plan type, model units, finished lots, or any other planning breakout that you care to imagine. Introduction 1-6

13 Each module has its own number of units, sales schedule, selling price by period, construction cost, and construction cost spread factors. The construction schedule for each module may be user-scheduled, may coincide with the sales schedule, or may be triggered when an input percent of units is sold in the preceding module. The sequence-of-events (i.e., unit sales, construction starts and completions, escrow closes, and standing inventory), as well as sales revenue and construction cost disbursements are displayed separately for each planning module that you define. The results for all modules combined in aggregate are displayed at the end of the report. If you wish, you may automatically pass this consolidated information pertaining to sequence-of-events, sales revenue, and direct construction cash flow as input to the Primary Report. The Summary (aggregate) section from two or more Sales & Construction Planning Reports may be consolidated on a time-phased basis if the 10 planning modules are not sufficient to accommodate your needs. Distribution Modification The Primary Report and the Consolidated Report (with re-calc of equity participation) each offers complete flexibility in the equity participation area pertaining to payments of returns on equity, returns of equity and profit distributions. Accounts are paid off in accordance with various defaults or alternate switch settings. This command allows for capabilities beyond the scope of the Primary Report. Your inputs dictate the order of cash distribution to the respective partners with the accounts being paid off as cash is distributed to each particular account. You may indicate a target internal rate of return to be received by the investor partner (optional), followed by a target internal rate of return to be received by the developer partner (optional), followed by up to three tiers of payouts with different percentages going to each partner within the given tier. The report output from this command is exactly the same format as the equity participation in the Primary Report or Consolidated Report, so the modified output may be substituted for the corresponding page(s) of either of those reports. Multiple Investment Partners Tract-PIE offers extensive flexibility for simulating equity capital participation between a Developer Partner and an Investor Partner. This participation may be calculated within a Primary Report or a Consolidated Report (with re-calculation of equity participation). Furthermore, the Distribution Modification command may be used to alter the proceeds distribution rules to be based on cash preference rather than account preference. However, the participation for the Developer and the Investor is represented as if each partner is a single entity. Of course, there may be multiple partners within either entity who each participate equally or based on some differing criteria. This command, Multiple Partners, is one of the selections available as part of the Auxiliary Reports command button. This command produces a new report by accessing the overall participation of either the Developer or the Investor from another report that you specify followed by allocating that participation (both capital contributions and distribution of proceeds) among up to 3 partners according to criteria indicated by your inputs. Each of the partners activated will be identified by your own descriptor, and the line item format for each partner s cash flow participation will be identical to that of original overall presentation. Introduction 1-7

14 PLAN vs UPDATE Variance Report This command produces a report displaying the line-by-line variances between one Primary Report representing the original "Plan" and a second Primary Report containing updated actual results through some specific period in the project time-line. In addition to comparing the actual results for a given project against the original approved plan, this report is useful for comparing results of different planning scenarios before the final plan is submitted for approval. The only thing you have to do to get this pre-formatted report is to select the names of the Primary Reports for the "Plan Report" and for the "Updated Report" and indicate which sequential period represents the "to-date" period. For each line from the Primary Report, the Variance Report displays columns for plan total, update total, over/under plan, and percent over/under plan. These columns are presented for the to-date time horizon as well as for the total project time horizon. A column is also displayed that indicates the "amount to complete" for each line item. This is the updated total amount minus the to-date total amount. NOTE: In order to make use of this command, it is important that you maintain a separate Primary Report on your disk that represents the original "plan." The best way to accomplish this is to provide an alternate filename the first time that you modify the "plan" with actual results. Thereafter, you would continue to modify against the updated filename as future actual results are provided. Cost Detail Planning Report This option allows you to plan expense amounts for any major cost category broken down to the individual account level which may match the accounts from your job cost system, if desired. To avoid double keying of data, certain entries may be accessed automatically via a link file output from your job cost system. Planning and tracking is performed separately for any of the following major cost categories: Offsite Improvement Miscellaneous Cost #3 Onsite Improvement Miscellaneous Cost #4 Common Areas Miscellaneous Cost #5 (You provide your own titles Direct Construction Miscellaneous Cost #6 for Misc. Costs #1 - #10) Indirect Construction Miscellaneous Cost #7 Model Upgrade Miscellaneous Cost #8 Marketing/Advertising Miscellaneous Cost #10 Miscellaneous Cost #1 Miscellaneous Cost #2 For each of the major categories listed above, you start by custom installing your own model consisting of up to 150 accounts. For each account you merely supply the account title and, optionally, the account number from your job cost system if you wish to include the ability to access certain data values that have already been entered. Your custom installed models then serve as the basis for creation or modification of input data as well as the printing of data input forms and/or hard copy of your already entered input data. Of course, you may still use the "Install Model" command to add or modify accounts included in the model. When you install a model for any one of the 10 Miscellaneous Cost items, you will be given the opportunity to provide a title for that Miscellaneous Cost item. Thereafter, that title will be displayed in the directory window anytime the cost categories are displayed. Your title should Introduction 1-8

15 be the same as the title that you provide for the corresponding to-be-named (miscellaneous cost) item in the Primary Report input process. The original cost estimate as well as the disbursement pattern may be planned individually for each account followed by aggregating the accounts to the major category level that may then be automatically passed along to the Tract-PIE Primary Report. The original planning process may be updated by making changes to the original cost estimates and by providing actual disbursements. Where actual disbursements are provided, the system will re-forecast the remaining cost to complete. There are two types of reports provided: the first is the Detail Report which presents report columns as the period-by-period detail of key line items for each account followed by all accounts rolled together to the category level. The second report, referred to as the Summary Report, presents one line per account and for the total category with columns labeled "Original Estimate", "Net Change", "Revised Estimate", "To-Date Planned", "To-Date Paid", "To- Date Over/Under", and "Cost to Complete." The data and resulting reports are normally related to a single phase of activity. Since there may be multiple phases of activity for the particular cost category related to a single project, this module offers a convenient time-phased consolidation feature so you can observe the information across the total project horizon in addition to automatically passing the project-level cash flow to the Primary Report. Report Consolidations Consolidate Cash Flow -- There are two options for performing a time-phased consolidation of multiple Primary Reports and/or Consolidated Primary Reports. The options differ with regard to whether the Equity Participation cash flow should be consolidated or recalculated. The first option performs a simple additive consolidation wherein the time-phased values from each line item are added together including the results of the equity participation. The discounted cash flow measures are the only values that are recalculated with this option. The second option recalculates the entire equity participation based on the consolidated cash flow after loans and the input parameters that you provide regarding equity participation. Executive Summary -- You may produce an Executive Summary from a Consolidated Report. Consolidated Mix Report: This report is calculated automatically in addition to the Consolidated Primary Report and the Consolidated Executive Summary Report as part of the Consolidation Report Family. This report presents individual lines from each Primary cash flow report that is called into the consolidation allowing you to observe the project-byproject contributions in each period that result in the consolidated total for major line items. The major line items detailed in the report are Unit Sales, Unit Closings, Unit Starts, Unit Completions, Standing Inventory, Gross Sales Revenue, Net Revenue, Total Disbursements Before Loans, Cash Flow Before Loans, Cash Flow After Loans, Total Loan Fees, Total Loan Interest, Total Loan Balance, IRR All Cash, IRR Leveraged, Gross Profit $, Gross Profit %, Profit Before Tax $, and Profit Before Tax %. Since you may call for up to 50 reports into a single consolidation, the number of individual line items that print may be as many as 50. (Note that a report called into a Consolidation may be a Primary or a Consolidated report, so ultimately the Consolidation is virtually unlimited.) The line title for each individual project line is taken from the first report heading that was provided for that Primary or Consolidated Report. Introduction 1-9

16 In addition to consolidating Primary Reports, Sales & Construction Planning Reports and Detail Cost Reports may also be consolidated on a time-phased basis. Merge Budget Analysis Reports -- The results from the Budget Analysis Reports associated with Primary Reports may be combined into a single report. This "electronic cut and paste" operation accesses the Grand Total column form each selected Budget Analysis Report and places it as a column in the new report with a column label of your choosing. An overall Grand Total column is then computed along with the other standard columns for Per Unit Average, Per Square Foot, Percent of Sales and Percent of Cost. Introduction 1-10

17 Section 2: Sample Report Output Sample Report Output 2-1

18 TRACT-PIE Demonstration Project (Activate All Output Items) File: tp-demo.rep Jan Feb Mar Apr May Jun Jul Aug Sep TOTAL CASH FLOW REPORT: History Periods=1 1 1 Unit Sales: Cumulative Construction Starts: Model Units 2 2 Production Units Cumulative Completions: Model Units 2 2 Production Units Cumulative Closings: Model Units 2 2 Production Units Cumulative Sold Not Started Sold Not Closed ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= Receipts: Sales Revenue 15,950,000 3,738,281 3,987,500 4,236,719 3,987,500 Premiums Revenue 500, , , , ,000 Options Revenue 640, , , , ,000 Model Upgrade Recovery 80,000 80,000 (You Name Rev #1) 4, (You Name Rev #2) 4, (You Name Rev #3) 2,000 2,000 (You Name Rev #4) 4,500 1,500 1,500 1,500 (You Name Rev #5) 3,000 2, (You Name Rev #6) 4,500 4,500 Less: Commissions 600, , , , ,538 Closing Costs 12,800 3,000 3,200 3,400 3,200 Buydowns 17,170 4,005 4,273 4,620 4,273 Discounts 85,850 20,027 21,363 23,098 21,363 (Your Sales Cost) 64,000 15,000 16,000 17,000 16, Net Receipts 16,412, ,300 3,800 3,826,545 4,082,928 4,417,030 4,079,428 Disbursements: Land & Acquisition 1,920,000 1,020, ,000 Option Deposit 90,000-90,000 Off-Site Improvement 886, , , ,500 On-Site Improvement 630, , , ,000 Common Areas 195,000 82,500 60,000 52,500 Direct Construction 8,456,760 39,641 79, , ,813 1,354,403 1,830,096 1,757,420 1,129, ,172 Options Cost 384,000 6,000 6,000 45,000 93,000 93,000 93,000 48,000 Indirect Construction 70,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Model Upgrade 100, ,000 Utility Deposits 12,000-6,000-6,000 Property Tax Payments 22,600 11,300 11,300 (Your Title #1) 28,000 28,000 (Your Title #2) 22,500 22,500 (Your Title #3) 31,500 10,500 10,500 10,500 (Your Title #4) 72,000 32,000 40,000 (Your Title #5) 85,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500 (Your Title #6) 5,500 5,500 (Your Title #7) 448,000 14, , , , ,000 (Your Title #8) 48,000 1,500 11,250 12,000 11,250 12,000 (Your Title #9) 686, , , , , , ,467 (Your Title #10) 42,925 7,154 7,154 7,154 7,154 7,154 7,154 Marketing/Advertising 515,100 64,388 64,388 64,388 64,388 64,388 64,388 64,388 64,388 Commitment Fee 64,000 64,000 Warranty Expense 257,550 60,082 64,088 69,293 64,088 Mgmnt Fee/Investor 85,850 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 69,850 Mgmnt Fee/Developer 85,850 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 45, Net Disbursements 15,143,935 1,630,029 1,622,670 1,246,921 1,788,621 1,733,661 2,313,686 2,127,016 1,494,572 1,186,759 Cash Flow Before Loans 1,268,095-1,630,029-1,622,170-1,246,421-1,787,321-1,729,861 1,512,858 1,955,911 2,922,459 2,892,668 ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= Property Tax Expense 22,600 1,700 3,200 3,200 3,200 3,200 3,200 2,450 1, /21/07 16:32:40 1/1

19 TRACT-PIE Demonstration Project (Activate All Output Items) File: tp-demo.rep Jan Feb Mar Apr May Jun Jul Aug Sep TOTAL CASH FLOW ANALYSIS: Cash Flow Before Loans 1,268,095-1,630,029-1,622,170-1,246,421-1,787,321-1,729,861 1,512,858 1,955,911 2,922,459 2,892,668 Loan Fees -149,766-27, ,404-31,364-29,404-31,364 Interest Paid -238,561-2,312-13,897-23,617-37,502-57,515-49,464-37,743-16,511 Loan Draws 15,391, ,373 1,458,922 1,544,430 2,120,758 2,054,776 2,613,085 2,104,227 1,453,373 1,130,868 Loan Repayments -15,391,813-10,846-23, , , ,208-4,019,245-3,997,962-4,247,835-2,313, Cash Flow B4 Equity 879, , , ,300 3,800 17,819 12,712 90,254 1,693,722 Equity Contributions 946, , ,839 Interest On Cash Return On Equity Paid -74,618-1,642-17,869-12,762-33,451-8,895 Returns of Equity -946,339-56, ,485 Profit Distribution -805, , Net Cash Flow 500 7,302 2,198-10,000 Cash Balance 500 7,802 10,000 10,000 10,000 10,000 ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= Cash Reserve Desired 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Discounted Cash: Discount Rate (%) N.P.V. All Cash 887, ,811 2,525,238 4,168,451 5,449,609 7,282,344 9,072,891 7,635,640 5,743,359 2,868,762 I.R.R. All Cash N.P.V. Leveraged 759, ,458 1,523,287 1,724,819 1,738,693 1,745,882 1,756,631 1,753,450 1,755,351 1,679,724 I.R.R. Leveraged ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= Land Residual Value: Assumed Profit (%) Developer Profit 1,717, , , , ,250 Adj'd Flow/Cash 1,471, , ,170-1,246,421-1,787,321-1,729,861 1,112,312 1,528,661 2,460,506 2,465,418 Adj'd Flow/Leveraged 1,082, , , ,300 3, , , ,699 1,266,472 Residual Value/Cash 1,171,557 1,171,557 1,791,348 2,528,446 3,795,937 5,614,891 7,391,543 6,340,828 4,865,007 2,445,043 Residual Val/Leveraged 1,051,160 1,051, ,835 84,814 85,021 78,429 75, , ,998 1,256,005 Value/Unclosed Unit 16,424 16,424 12,451 1,325 1,328 1,225 1,176 9,360 26,576 78,500 Beg.Loan To Value-% ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= Finance Summary: Net Proj Cost Outstanding -912,451 1,658,027 3,282,740 4,572,461 6,414,764 8,211,531 6,780,998 4,866,386 1,972, ,451 Loans & Eqty Outstanding 1,058,027 2,682,740 3,972,961 5,822,564 7,623,131 6,371,659 4,642,924 1,966,921 Less Equity Outstanding 757, , , , , , , , Secured Lns Outstanding 300,527 1,736,401 3,026,623 4,876,225 6,676,793 5,425,320 3,696,585 1,077,436 Max Cost Outstanding 8,211,531 8,211,531 Max Total Equity 946, ,339 Max Loan Exposure 6,676,793 6,676,793 Max Purchase Note Balance 995, ,200 Max A&D Loan Balance 519, ,287 Max Constr Loan Balance 5,412,512 5,412,512 Max Developer Equity 378, ,535 Max Investor Equity 567, ,803 09/21/07 16:35:49 1/1

20 TRACT-PIE Demonstration Project (Activate All Output Items) File: tp-demo.rep Jan Feb Mar Apr May Jun Jul Aug Sep TOTAL LOAN FLOW REPORT: Purchase Note: (%) of Assigned Cost Total Note Amount 1,014,434 1,014,434 Annual Interest(%) Interest Reserve 1,153 44,290 43,705 35,616 27,459 19,234 10,941 4,857 1,153 Loan Fee 10,144 10,144 Begin Note Balance 70, , , , , , , ,332 Draw Interest 44, ,089 8,157 8,225 8,293 6,084 3,704 1,153 Draw Costs 970,144 70, ,000 Repayment -1,014, , , , ,485 End Note Balance 70, , , , , , , ,332 Interest Payment 44, ,089 8,157 8,225 8,293 6,084 3,704 1,153 Loan (%) Project Cost Lender I.R.R ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= A & D Loan: (%) of Assigned Cost Total Loan Amount 1,084,622 1,084,622 Non-Phase Funding 23,072 23,072 Phase Funding 1,061,550 1,061,550 Annual Interest(%) Interest Reserve 12,226 9,829 6,077 2,074 Loan Fee 10,846 10,846 Begin Loan Balance 311, , , ,081 Draw Interest 12,226 2,397 3,752 4,003 2,074 Draw Costs 1,072,396 10, , , ,000 Repayment -1,084,622-10,846-23, , , , ,155 End Loan Balance 311, , , ,081 Interest Payment 12,226 2,397 3,752 4,003 2,074 Loans (%) Project Cost Lender I.R.R Investor Loan= ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= Construction Loan: Loan (%) of Sales Total Loan Amount 12,877,500 12,877,500 Non-Phase Funding 1,362,760 1,362,760 Phase Funding 11,514, ,810 2,686,193 2,865,272 2,686,193 2,865,272 Annual Interest(%) Interest Reserve 7,043 20,583 50,011 79,835 99, ,242 66,648 31,434 7,043 Loan Fees 128,775 7, ,404 31,364 29,404 31,364 Begin Loan Balance 230, ,670 1,561,114 3,369,963 5,412,512 4,695,249 3,252, ,104 Draw Interest 149,363 1,728 3,410 11,708 25,275 40,594 35,214 24,391 7,043 Draw Costs 12,543, , ,560 1,103,033 1,797,141 2,017,274 2,562,124 2,062,929 1,425,279 1,122,672 Repayments -12,692,757-3,319,980-3,541,313-3,762,645-2,068,819 End Loan Balance 230, ,670 1,561,114 3,369,963 5,412,512 4,695,249 3,252, ,104 Interest Payment 149,363 1,728 3,410 11,708 25,275 40,594 35,214 24,391 7,043 Loans (%) Project Cost Lender I.R.R ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= LAND PARTNER Annual Interest(%) Begin Loan Balance 600, , , , , , , ,000 Loan Advances 600, ,000 Repayments -600, , , , ,000 End Loan Balance 600, , , , , , , ,000 Interest Expense 32,682 5,000 5,042 5,084 5,126 5,169 3,868 2, Interest Paid 32,682 6,554 8,166 9,648 8,314 Accrued Interest Bal 5,000 10,042 15,125 20,251 18,867 14,569 7,378 Profit Distribution 80,539 80,539 Lender I.R.R ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= 09/21/07 16:37:40 1/1

21 TRACT-PIE Demonstration Project (Activate All Output Items) File: tp-demo.rep Jan Feb Mar Apr May Jun Jul Aug Sep TOTAL Developer Participation: Return Annual-% Begin Equity Balance 303, , , , , , , ,535 Equity Contribution 378, ,000 75,535 Return of Equity 378, ,535 End Equity Balance 303, , , , , , , ,535 Return Accrual 30,132 3,030 3,816 3,854 3,892 3,931 3,919 3,904 3,785 Return Paid 30,132 5,133 5,435 15,779 3,785 End Accrued Return Bal 3,030 6,846 10,699 14,592 13,390 11,875 End Combined Balance 303, , , , , , , ,535 Profit Distribution 322, ,157 Management Fee 85,850 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 45,850 Net Cash Flow 438, ,000-70,535 5,000 5,000 5,000 10,133 10,435 20, ,328 Net Cash Balance 438, , , , , , , , , ,139 Net Present Value 384, ,857 Internal Rate of Return ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= Investor Participation: Return Annual-% Begin Equity Balance 454, , , , , , , ,950 Equity Contribution 567, , ,303 Return of Equity 567,803 56, ,950 End Equity Balance 454, , , , , , , ,950 Return Accrual 44,486 4,545 5,723 5,781 5,839 5,880 5,812 5,797 5,109 Return Paid 44,486 1,642 12,736 7,327 17,672 5,109 End Accrued Return Bal 4,545 10,268 16,049 20,246 13,390 11,875 End Combined Balance 454, , , , , , , ,950 Profit Distribution 402, ,696 Net Cash Flow 447, , ,303 1,642 12,736 7,327 74, ,755 Net Cash Balance 447, , , , , , , , , ,182 Net Present Value 380, ,796 Internal Rate of Return ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= Loan Participation: Net Cash Flow 23,072 10, , ,292-28, , ,155 Net Cash Balance 23,072 10, , , , ,083 23,072 23,072 23,072 23,072 Net Present Value 9,801 9,801 Internal Rate of Return Combined: Net Cash Flow 470, , , ,292-28, , ,892 7,327 74, ,755 Net Cash Balance 470, , ,959-1,041,250-1,070, , , , , ,254 Net Present Value 390, ,598 Internal Rate of Return ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= 09/21/07 16:39:47 1/1

22 TRACT-PIE Demonstration Project (Activate All Output Items) File: tp-demo.rep Jan Feb Mar Apr May Jun Jul Aug Sep TOTAL PROFIT & LOSS: Sales 17,170,000 4,005,469 4,272,500 4,619,531 4,272,500 Cost of Sales 15,017,161 3,503,248 3,736,798 4,040,317 3,736, Gross Profit 2,152, , , , ,702 (%) of Sales Direct Expense: Marketing/Advertising 515,100 64,388 64,388 64,388 64,388 64,388 64,388 64,388 64,388 Commissions 600, , , , ,538 Closing Costs 12,800 3,000 3,200 3,400 3,200 Buydowns 17,170 4,005 4,273 4,620 4,273 Discounts 85,850 20,027 21,363 23,098 21,363 (Your Sales Cost) 64,000 15,000 16,000 17,000 16, Total Direct Expense 1,295,870 64,388 64,388 64,388 64,388 64, , , , ,373 Interest Income (You Name Rev #1) 4, (You Name Rev #2) 4, (You Name Rev #3) 2,000 2,000 (You Name Rev #4) 4,500 1,500 1,500 1,500 (You Name Rev #5) 3,000 2, (You Name Rev #6) 4,500 4,500 Profit Before Tax 880,010-64,388-63,888-63,888-63,085-60, , , , ,679 Profit Margin(%) ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= BALANCE SHEET: Assets: Cash 500 7,802 10,000 10,000 10,000 10,000 Capitalized Costs 1,505,340 3,164,365 4,398,441 6,174,639 7,919,145 6,755,890 5,129,337 2,551,406 Land Option Deposit 90, Total Assets 1,595,340 3,164,365 4,398,941 6,182,441 7,929,145 6,765,890 5,139,337 2,561,406 ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= Liabilities & Equity: Purchase Note 70, , , , , , , ,332 A & D Loan 311, , , ,081 Construction Loan 230, ,670 1,561,114 3,369,963 5,412,512 4,695,249 3,252, ,104 LAND PARTNER 600, , , , , , , , Total Loan Balance 900,527 2,341,401 3,636,664 5,491,350 7,297,044 5,889,499 3,991,466 1,189,814 Accrued Property Tax 1,700 4,900 8,100 3,200 6,400 8,850 10,500 Total Liabilities 902,227 2,346,301 3,644,764 5,491,350 7,300,244 5,895,899 4,000,316 1,200,314 Net Cash Invested -880, , , , , , , , , ,010 Cumulative Profit/(Loss) 880,010-64, , , , ,796-56, , , ,010 Total Liabilities & Equity 1,595,340 3,164,365 4,398,941 6,182,441 7,929,145 6,765,890 5,139,337 2,561,406 ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= 09/21/07 16:41:26 1/1

23 TRACT-PIE Demonstration Project (Activate All Output Items) File: bp-demo.rep Stonebridge Cascade Springwood Odyssey Grand Unit Per (%) of (%) of BUDGET REPORT: Total Average Sq Ft Sales Cost Product Mix: Production Units Models Square Footage 1,600 1,800 2,200 2, ,100 1,955 Revenue: Base Sales Revenue 240, , , ,000 15,950, , Premiums Revenue 7,813 7,813 7,813 7, ,000 7, Options Revenue 10,000 10,000 10,000 10, ,000 10, Model Upgrade Recovery 1,250 1,250 1,250 1,250 80,000 1, Gross Sales Revenue 259, , , ,063 17,170, , Plus: (You Name Rev #1) , (You Name Rev #2) , (You Name Rev #3) , (You Name Rev #4) , (You Name Rev #5) , (You Name Rev #6) , Interest Income Total Gross Revenue 259, , , ,423 17,193, , Less: Commissions 9,043 9,231 9,419 10, ,950 9, Closing Costs , Buydowns , Discounts 1,341 1,341 1,341 1,341 85,850 1, (Your Sales Cost) 1,000 1,000 1,000 1,000 64,000 1, Total Net Revenue 247, , , ,252 16,412, , Disbursements: Land & Acquisition 30,000 30,000 30,000 30,000 1,920,000 30, Off-Site Improvement 13,852 13,852 13,852 13, ,500 13, On-Site Improvement 9,844 9,844 9,844 9, ,000 9, Common Areas 3,047 3,047 3,047 3, ,000 3, Direct Construction 108, , , ,000 8,456, , Options Cost 6,000 6,000 6,000 6, ,000 6, Indirect Construction 1,094 1,094 1,094 1,094 70,000 1, Model Upgrade 1,563 1,563 1,563 1, ,000 1, Property Tax Payments , (Your Title #1) , (Your Title #2) , (Your Title #3) , (Your Title #4) 1,125 1,125 1,125 1,125 72,000 1, (Your Title #5) 1,336 1,336 1,336 1,336 85,500 1, (Your Title #6) , (Your Title #7) 7,000 7,000 7,000 7, ,000 7, (Your Title #8) , (Your Title #9) 10,731 10,731 10,731 10, ,800 10, (Your Title #10) , Marketing/Advertising 8,048 8,048 8,048 8, ,100 8, Commitment Fee 1,000 1,000 1,000 1,000 64,000 1, Warranty Expense 4,024 4,024 4,024 4, ,550 4, Mgmnt Fee/Investor 1,341 1,341 1,341 1,341 85,850 1, Mgmnt Fee/Developer 1,341 1,341 1,341 1,341 85,850 1, Loan Fees/Interest 6,068 6,068 6,068 6, ,326 6, Total Disbursements 218, , , ,555 15,532, , Net Profit 28,856 20,147-2,081 1, ,010 13, ========= ========= ========= ========= ========= ========= ========= ========= ========= Profit Margin (%) /21/07 16:44:20 1/2

24 TRACT-PIE Demonstration Project (Activate All Output Items) File: bp-demo.rep Stonebridge Cascade Springwood Odyssey Grand Unit Per (%) of (%) of BUDGET REPORT: Total Average Sq Ft Sales Cost Plan Totals: Plan Sales Total 4,663,125 5,017,188 4,843,125 2,646,563 17,170,000 Plan Profit Total 519, ,797-37,461 15, ,010 Profit As: (%) of Costs (%) of Sales Dollars Per Sq Ft: Sales Price Direct Construction Plan Mix As: % of Total Units % of Total Profit Maximum Balances: Cumltv Cost Outstndng 8,211, , Secured Loans 6,676, , Total Equity 946,339 14, Before Loans: Net Present Value 887,811 13, Internal Rate Return Land Residual Value 1,171,557 18, After Loans: Net Present Value 759,458 11, Internal Rate Return Land Residual Value 1,051,160 16, Discount Rate (%) /21/07 16:44:20 2/2

25 TRACT-PIE Demonstration Project (Activate All Output Items) File: es-demo.rep PRODUCT SUMMARY LOAN FINANCE SUMMARY Base Price/ Sub- Misc. Units Price Total SqFt SqFt Purchase A & D Constructn Totals Finance ======== Stonebridge ,000 4,320,000 1, Max Loan Amt 1,014,434 1,084,622 12,877,500 Cascade ,000 4,655,000 1, Max Bal Outst 995, ,287 5,412,512 6,676, ,251 Springwood ,000 4,500,000 2, Odyssey 9 275,000 2,475,000 2, Loan Fees ($) 10,144 10, , ,766 Loan Fees (%) Interest Rate (%) Interest Paid 44,290 12, , ,879 32,682 Interest Draws 44,290 12, , ,879 32,682 Non-Int Draws 970,144 1,072,396 12,543,393 14,585, , Total Draws 1,014,434 1,084,622 12,692,757 14,791, ,682 Sub-Totals ,219 15,950, , Total Repaid 1,014,434 1,084,622 12,692,757 14,791, ,682 Price Escalations Lender IRR(%) Premiums 7, ,000 Loan-to-Val (%) Options 10, ,000 Loan-to-Cost (%) Model Upgrade Recovery 1,250 80,000 Profit Distribution 80, Gross Sales Revenue 268,281 17,170,000 PROJECT CASH FLOW EQUITY PARTICIPATION Without Loans After Loans Developer Investor Total Net Cash Flow 1,268, ,769 Total Equity Advanced 378, ,803 Max Net Cost Outstanding 8,015,802 8,211,531 (%) of Total Equity Internal Rate of Return (%) (%) of Total Cost Net Present Value 887, ,458 Maximum Equity Balance 378, ,803 Land Residual Value 1,171,557 1,051,160 Discount Rate (%) Return Annual (%) Return on Equity Received 30,132 44,486 PROFIT SUMMARY Profit Distribution 322, ,696 (%) of Profit Distribution Management Fee Received 85,850 Net Profit before Returns on Equity 880,010 (%) of Gross Sales Revenue 5.13 Net Present Value 384, ,796 (%) of Total Costs 5.39 Discount Rate (%) Internal Rate of Return (%) Net Profit after Returns on Equity 805,392 (%) of Gross Sales Revenue 4.69 ABSORPTION (%) of Total Costs 4.94 Average Absorption per Sales Month 10.7 Project Duration (months) 9 09/21/07 16:45:52 1/1

26 TRACT-PIE Demonstration Sales & Construction Planning File: sp-demo.rep Jan Feb Mar Apr May Jun Jul Aug Sep TOTAL PHASE 1 (AVG UNIT) Price per Unit 245, ,000 Premium per Unit 4,000 4,000 Direct Cost per Unit 114,000 Unit Sales Production Unit Starts Production Completns Production Closings Standing Inventory 2 Direct Construction 2,280, , , , ,000 Sales Revenue 4,900,000 4,410, ,000 Premiums Revenue 80,000 72,000 8,000 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= PHASE 2 (AVG UNIT) Price per Unit 270, ,000 Premium per Unit 5,000 5,000 Direct Cost per Unit 129,200 Unit Sales Production Unit Starts Production Completns Production Closings Standing Inventory 6 Direct Construction 2,584, ,000 1,033, , ,400 Sales Revenue 5,400,000 3,780,000 1,620,000 Premiums Revenue 100,000 70,000 30,000 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= PHASE 3 (AVG UNIT) Price per Unit 290, ,000 Premium per Unit 8,000 8,000 Direct Cost per Unit 152,000 Unit Sales Production Unit Starts Production Completns Production Closings Standing Inventory 4 Direct Construction 3,040, ,000 1,216, , ,000 Sales Revenue 5,800,000 4,640,000 1,160,000 Premiums Revenue 160, ,000 32,000 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= MODEL UNITS Price per Unit 295,000 Direct Cost per Unit 123,500 Unit Sales 4 4 Model Unit Starts 4 4 Model Completions 4 4 Model Closings 4 4 Standing Inventory 4 Direct Construction 494, , , ,500 49,400 Model Upgrade 120, ,000 Sales Revenue 1,180,000 1,180,000 Model Upgrd Recovry 80,000 80,000 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= 09/21/07 16:57:58 1/2

27 TRACT-PIE Demonstration Sales & Construction Planning File: sp-demo.rep Jan Feb Mar Apr May Jun Jul Aug Sep TOTAL SUMMARY TOTALS: Unit Sales Cumulative Construction Starts: Model Units 4 4 Production Units Cumulative Completions: Model Units 4 4 Production Units Cumulative Closings: Model Units 4 4 Production Units Cumulative Standing Inventory Receipts: Sales Revenue 17,280,000 4,410, ,000 3,780,000 1,620,000 4,640,000 2,340,000 Premiums Revenue 340,000 72,000 8,000 70,000 30, ,000 32,000 Model Upgrd Recovry 80,000 80,000 Disbursements: Direct Construction 8,398, , ,600 1,035,500 1,265,400 1,261,600 1,406,000 1,474, , ,000 Model Upgrade 120, ,000 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= Housing Sales Revenue 17,280,000 4,410, ,000 3,780,000 1,620,000 4,640,000 2,340,000 09/21/07 16:57:58 2/2

28 Tract-PIE Cost Detail Demonstration Offsite Improvement (Sample Accounts) File: 1p-demo.rep Jan Feb Mar Apr May Jun Jul Aug Sep TOTAL OFFSITE IMPROVEMENT: Grading: Original Estimate 550, ,000 Revised Estimate 550, ,000 Planned Payments 550, ,985 99,990 99,990 99, ,045 Actual / Re-Forecast 550, ,985 99,990 99,990 99, ,045 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= Storm Drain: Original Estimate 400, ,000 Revised Estimate 400, ,000 Planned Payments 400, , ,000 Actual / Re-Forecast 400, , ,000 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= Sewer: Original Estimate 340, ,000 Revised Estimate 340, ,000 Planned Payments 340, ,000 Actual / Re-Forecast 340, ,000 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= Water: Original Estimate 200, ,000 Revised Estimate 200, ,000 Planned Payments 200, ,000 Actual / Re-Forecast 200, ,000 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= Reclaimed Water: Original Estimate 145, ,000 Revised Estimate 145, ,000 Planned Payments 145, ,000 Actual / Re-Forecast 145, ,000 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= Street Improvement: Original Estimate 580, ,000 Revised Estimate 580, ,000 Planned Payments 580, , , , ,000 Actual / Re-Forecast 580, , , , ,000 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= Utilities: Original Estimate 260, ,000 Revised Estimate 260, ,000 Planned Payments 260,000 65,000 65,000 65,000 65,000 Actual / Re-Forecast 260,000 65,000 65,000 65,000 65,000 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= Landscape: Original Estimate 740, ,000 Revised Estimate 740, ,000 Planned Payments 739, , , ,666 Actual / Re-Forecast 740, , , ,667 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= OFFSITE IMPROVEMENT TOTALS: Original Estimate 3,215, , , ,000 1,140, , ,000 Net Change Revised Estimate 3,215, , , ,000 1,140, , ,000 Planned Payments 3,214, ,985 99,990 99, , , , , , ,666 Actual Payments Actual / Re-Forecast 3,215, ,985 99,990 99, , , , , , ,667 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= 09/21/07 17:09:45 1/1

29 Tract-PIE Cost Detail Demonstration Offsite Improvement (Sample Accounts) File: 1p-demo.rep Original Net Revised To-Date To-Date To-Date Cost To Estimate Change Estimate Planned Paid Ovr/Undr Complete OFFSITE IMPROVEMENT: Grading: 550, , ,000 Storm Drain: 400, , ,000 Sewer: 340, , ,000 Water: 200, , ,000 Reclaimed Water: 145, , ,000 Street Improvement: 580, , ,000 Utilities: 260, , ,000 Landscape: 740, , , Totals 3,215,000 3,215,000 3,215,000 09/21/07 17:12:19 1/1

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31 Section 3: How to Use Tract-PIE Selecting a Data Directory (Folder) for Tract-PIE Files Your Tract-PIE input data files and calculated report files may reside in the same directory (folder) as the Tract-PIE program files or in any other directory of your choosing. It is often desirable to maintain one or more data directories distinct from the program directory for easier file management and back-up purposes. You may maintain separate data directories for separate projects and/or users. When you first enter Tract-PIE, you will be presented with a dialogue box to either approve the last data directory used, to select a different data directory, or to make a new data directory. This dialogue box may also be called by clicking the Change Data Directory (Folder) command under the Utilities Command Button. You also change the default path if you select a different directory for Open or SaveAs while in the data input mode. Hint lines appear at the bottom of the dialogue box depending on the area that has focus. Any changes you make are accepted if you click OK, while the original directory displayed by the dialogue box will be retained if you click Cancel. The dialogue box for selecting a data directory is shown below: How to Use Tract-PIE 3-1

32 COMMAND BUTTONS MAIN MENU The Main Menu consists of a series of Command Buttons with descriptive labels displayed to the right. This is where you choose the area and function of Tract-PIE that you wish to invoke. There is a pop-up menu of commands that is displayed when you activate a Command Button either by clicking on the button or by pressing the letter that is underlined on the button label. The various commands on the pop-up menu are activated similarly by clicking on a selection or by pressing the letter that is underlined in the command description. You may call a brief Help Screen that describes the role of the Command Button by pointing the mouse cursor at the button and pressing the F1 key, or by clicking Help on the menu bar and selecting the What s This Pointer which can then be clicked on any of the Command Buttons. The Main Menu is shown below: Primary Reports Command Button The Primary Report is the heart of Tract-Pie. It contains the calculated period-by-period results for sequence of events, cash flow, loan flow, equity participation, profit and loss statement and balance sheet. The Budget Analysis Report and Executive Summary are additional reports based on the results contained in the Primary Report and, as such, are part of a Report Family for a given development scenario. How to Use Tract-PIE 3-2

33 Clicking this button produces a pop-up menu offering you the choice of 3 input modes for creating or modifying assumptions prior to calculating a given Primary Report. The input modes are interchangeable in that they all will Save a complete data file to your disk and calculate a complete Primary Report. The difference among the modes is in the scope of input items and screens that are presented. There are also choices for creating the Budget Analysis Report and Executive Summary. Full Screens -- Presents all of the input items on all of the input screens, and will be the most commonly used mode. Quick Feasibility -- Distills the input capabilities into the bare essentials required to provide a thorough feasibility test for a project. The input items presented are a subset of those available in the All Screens input mode. Overrides Only -- Presents screens containing only Override items (which are interspersed on the various screens with the Full Screens mode). Detailed Planning Command Button Planning in considerably greater detail than is available or appropriate within the Primary Report may be performed in the areas of Sales & Construction and Cost Detail. The summarized results of this planning process may be accessed automatically for inclusion within the calculated Primary Report. Both the Sales & Construction Planning and Cost Detail Planning allow for time-staged consolidations of other like reports, so the amount of detail that can be rolled up to the aggregate level is virtually unlimited. (Note: You will also be able to drill down to this detailed planning area directly from the input screens within the Primary Input process and then loop back to the Primary Data file that was originally opened. Refer to the description under Input Screens Menu Bar Commands. ) Sales & Construction Planning -- Provides separate modules allowing you to break out your planning process in any way you wish in order to gain a detailed look at sales and construction scheduling and the corresponding receipts and disbursements. You identify each module using your own terminology, and the units may be a production phase, a plan type, model units, lots, or any other planning breakout that you care to imagine. Each module has its own number of units, sales schedule, construction schedule, price per unit and cost per unit. Results are produced for each module and in aggregate which may be passed on to the Primary Report. Cost Detail Planning -- Allows you to define a custom chart of accounts for any major cost category contained within the Primary Report. Once the chart of accounts is defined, the planning for each account includes the budget amount, planned disbursement pattern, and actual to-date disbursements. Results are displayed for each account and for the aggregate of all accounts. The aggregate disbursement flow may be passed on to the Primary Report. Consolidations Command Button Consolidate Cash Flow -- There are two options for performing a time-phased consolidation of multiple Primary Reports and/or Consolidated Primary Reports. The options differ with regard to whether the Equity Participation cash flow should be consolidated or recalculated. The first option performs a simple additive consolidation wherein the time-phased values from each line item are added together including the results of the equity participation. The discounted cash flow measures are the only values that are recalculated with this option. The second option How to Use Tract-PIE 3-3

34 recalculates the entire equity participation based on the consolidated cash flow after loans and the input parameters that you provide regarding equity participation. A display of the input screen for selecting reports to consolidate is shown below: Executive Summary -- You may produce an Executive Summary from a Consolidated Primary Report. Consolidated Mix Report: This report is calculated automatically in addition to the Consolidated Primary Report and the Consolidated Executive Summary Report as part of the Consolidation Report Family. This report presents individual lines from each Primary cash flow report that is called into the consolidation allowing you to observe the project-byproject contributions in each period that result in the consolidated total for major line items. The major line items detailed in the report are Unit Sales, Unit Closings, Unit Starts, Unit Completions, Standing Inventory, Gross Sales Revenue, Net Revenue, Total Disbursements Before Loans, Cash Flow Before Loans, Cash Flow After Loans, Total Loan Fees, Total Loan Interest, Total Loan Balance, IRR All Cash, IRR Leveraged, Gross Profit $, Gross Profit %, Profit Before Tax $, and Profit Before Tax %. Since you may call for up to 50 reports into a single consolidation, the number of individual line items that print may be as many as 50. (Note that a report called into a Consolidation may be a Primary or a Consolidated report, so ultimately the Consolidation is virtually unlimited.) The line title for each individual project line is taken from the first report heading that was provided for that Primary or Consolidated Report. In addition to consolidating Primary Reports, Sales & Construction Planning Reports and Detail Cost Reports may also be consolidated on a time-phased basis. How to Use Tract-PIE 3-4

35 Merge Budget Analysis Reports -- The results from the Budget Analysis Reports associated with Primary Reports may be combined into a single report. This "electronic cut and paste" operation accesses the Grand Total column form each selected Budget Analysis Report and places it as a column in the new report with a column label of your choosing. An overall Grand Total column is then computed along with the other standard columns for Per Unit Average, Per Square Foot, Percent of Sales and Percent of Cost. Auxiliary Reports Command Button Distribution Modification -- Allows for capabilities beyond the scope of the Primary Report for the distribution of cash. You may indicate a target internal rate of return to be received by the investor partner and/or developer (optional) followed by up to three tiers of payouts with different percentages going to each partner within the given tier. The report output from this command is exactly the same format as the equity participation in the Primary Report, so the modified output may be substituted for the corresponding page. The input screen for Distribution Modification is shown below: How to Use Tract-PIE 3-5

36 Multiple Investment Partners --Tract-PIE offers extensive flexibility for simulating equity capital participation between a Developer Partner and an Investor Partner. This participation may be calculated within a Primary Report or a Consolidated Report (with re-calculation of equity participation). Furthermore, the Distribution Modification command may be used to alter the proceeds distribution rules to be based on cash preference rather than account preference. However, the participation for the Developer and the Investor is represented as if each partner is a single entity. Of course, there may be multiple partners within either entity who each participate equally or based on some differing criteria. This command produces a new report by accessing the overall participation of either the Developer or the Investor from another report that you specify followed by allocating that participation (both capital contributions and distribution of proceeds) among up to 3 partners according to criteria indicated by your inputs. Each of the partners activated will be identified by your own descriptor, and the line item format for each partner s cash flow participation will be identical to that of original overall presentation. Selection of Referenced Report: The first step after you click the Multiple Partners command selection, is to select (for a new analysis) or confirm (for a previously saved analysis) a report from which to access the overall equity participation that will be allocated to the multiple partners. You will be presented with a file selection dialogue box from which to make your selection from a list of valid reports that includes Primary reports, Consolidated Primary reports and Distribution Modification reports. Input Description: The input control for the Multiple Partners analysis is presented on five input screens. The default assumption is that the overall cash participation for the Investor Partner will be accessed from the referenced report as the starting point, but you may set an input trigger to indicate that the cash participation for the Developer Partner should be accessed instead. You may allocate the overall participation among three partners with up to four levels of distribution criteria. For each partner, you will provide a descriptive identifier, an annual interest rate percent to be earned on the capital balance, period-by-period percentages to allocate the overall equity capital contributions, and optional overriding return (interest) accruals by period. For each of the four distribution tiers (activate only as many tiers as needed), you will indicate the percentage of profit distribution that will be allocated to each partner until the end of the tier has been achieved. For each tier there are varying criteria that may be indicated for defining the end of the tier as follows: Tier #1 a target internal rate of return for Partner #1 or a break level dollar amount; Tier #2 -- a target internal rate of return for Partner #2, the point at which the distribution to Partner #2 equals the distribution to Partner #1, or a break level dollar amount; Tier #3 a target internal rate of return for Partner #3 or a break level dollar amount; Tier #4 -- a break level dollar amount. PLAN vs UPDATE Variance Report -- This command produces a report displaying the lineby-line variances between one Primary Report representing the original "Plan" and a second Primary Report containing updated actual results through some specific to-date period in the project time-line. In addition to comparing the actual results for a given project against the original approved plan, this report is useful for comparing results of different planning scenarios before the final plan is submitted for approval. The only thing you have to do to get this preformatted report is to select the names of the Primary Reports for the "Plan Report" and for the "Updated Report" and indicate which months represent the Start and End months for the "To-Date" periods. How to Use Tract-PIE 3-6

37 For each line from the Primary Report, the Variance Report displays columns for Plan Total, Update Total, Over/Under Plan, and Percent Over/Under. These columns are presented for the to-date time horizon as well as for the total project time horizon. A column is also displayed that indicates the amount to complete for each line item. This is the updated total amount minus the to-date total amount. Note: In order to make use of this command, it is important that you maintain a separate Primary Report on your disk that represents the original "plan." The best way to accomplish this is to provide an alternate filename the first time that you modify the "plan" with actual results. Thereafter, you would continue to modify against the updated filename as future actual results are provided. The Plan vs Update Variance Report interface form is show below: How to Use Tract-PIE 3-7

38 View / Print Command Button This command first requires that you select a Tract-PIE report category then followed by selecting an existing calculated report within that category. (The report category correlates with the first two characters in the filename to be presented in the selection dialogue box.) After you select an existing calculated report within the chosen report category, the contents of the report will be loaded into the display grid for viewing and/or printing just as it is upon completion of the original report calculation process. (Refer to Display Grid Menu Bar Commands for a description of the Display Grid functionality.) The Report Category selection screen is shown below: Print Output to.pdf File -- When you click the Print selection from the Tract-PIE report display grid menu bar, you are presented with your Windows operating system print dialogue box. This dialogue box displays your default printer as the initial selection for output destination, but there is also a drop down list available for you to select alternate output destinations such as other printers, fax output, or various software formatting products. If you have installed a PDF writer software product such as Adobe, you will have the option presented of sending the output to a PDF file which may then be displayed by a PDF reader. (Adobe offers their PDF reader software as a free download.) PDF files are a very convenient way to capture print output for storage purposes and/or for electronic distribution to others. How to Use Tract-PIE 3-8

39 For your convenience, we have obtained proprietary license rights to distribute free internet downloads for a PDF writer product named PDF-XChange 3.0. If you download and install this software to a computer where Tract-PIE is loaded, then you will have the option of using its robust capabilities for Tract-PIE print output to PDF files. Our license rights allow for unrestricted output of PDF files, whereas if you select this output resource in conjunction with other application software, you get the Buy Me Now watermark on the PDF output. If you register the product for a nominal fee from Tracker Software Products Ltd., you may use it in conjunction with all of your application software. Tract-PIE has been specifically integrated with PDF-XChange 3.0 so that when you select this as your output source, it will automatically select an output filename that coincides with your active data path and report filename. You may easily change the filename including selecting a filename that already exists. If the filename already exists, you may select among the options of overwriting the file contents, or of inserting the new output at the beginning of the file or appending to the end of the file. So, in this way, you can easily create a PDF file that is named for a particular project containing several different formatted report outputs all pertaining to the same project. This is a very powerful and exciting feature! Each time you write to the PDF file, you may select formatting options such as page orientation, font, shrink to fit, etc. Immediately after the contents are written to the PDF file, the system will invoke the Adobe PDF reader to display the output for your review. Data Forms Command Button These selections provide you the option of printing a blank data input form or of printing the existing assumptions from a given data input file. The printed forms present the input items grouped according to the screen number on which they are found within the corresponding input prompting program. The option for printing a data input form prints all input items with the number of time periods that you select for time-dependent items. This option allows you to "pencil in" your assumptions before you or someone else enters them. The option for printing your existing assumptions offers you the option of printing all input items whether activated or not, or of omitting any items that you ignored during the input process. How to Use Tract-PIE 3-9

40 The control form is shown below as it would appear before you invoke the printing of existing assumptions from a data file: Goal Seeking Command Button: Several Goal Seeking command choices are available by clicking the Goal Seeking Command Button on the Main Menu. These commands automatically adjust the Land Acquisition value within a Primary Report in order to achieve a specified target result for project Net Present Value, Internal Rate of Return, Profit as a percent of sales, Profit as a dollar amount or a calculated Land Residual Value that is equal to the Land Acquisition Cost. You may also select a command to determine the Discount Rate percent that will result in a calculated Land Residual Value equal to the Land Acquisition Cost. Where appropriate, you will select a command that dictates whether the target value is based on cash flows before loans or after loans. The financial viability of a development project often hinges on the amount paid for the acquisition of the land. These Goal Seeking commands are of great value during the land purchase negotiation process in that they allow you to determine the exact land acquisition cost that would allow the project to achieve a profitability yardstick that meets your acceptance criterion. Of course, all other assumptions regarding product mix, density, sales prices, absorption, and cost disbursements must be validated before invoking the Goal Seeking process. An altered value for Land Acquisition may affect the Property Tax expense and/or Loan Interest expense depending on your input assumptions related to these items, and these relationships will be accommodated automatically as part of the Goal Seeking process. How to Use Tract-PIE 3-10

41 After you click a command from the Goal Seeking pop-up menu, a form will appear requesting you to select a Primary Report that will undergo the desired adjustment processing. For those commands that adjust the Land Acquisition cost to achieve a specified target value, you will be prompted for your desired target value. Tract-PIE will then reprocess the report logic on an iterative basis while making appropriate adjustments until the target result is achieved within a small tolerance. The mathematics of interpolation are built into the iterative process to maximize efficiency. The results will be deposited into a report having the letters SEEK appended to the original report filename, and will be immediately presented on the display grid. For example, if the original Primary Report is named tp-ranch.rep, then the adjusted report will be named tp-ranchseek.rep. The Primary Report disbursement values for Land & Acquisition, whether they were input directly or calculated based on lot takedowns, will be adjusted up or down by applying trial percentage increments. Therefore, you must indicate some assumed disbursement for Land & Acquisition in the original Primary Report or else the percentage adjustments will result in zero making it impossible for the Goal Seeking process to achieve a solution. It is important to note that the Goal Seeking process does not change the original input data contained in your Primary data file. Rather, it displays what the altered Land & Acquisition disbursement(s) would have to be in order to achieve the desired results. Also, there is no Budget Analysis Report or Executive Summary Report produced in conjunction with the Goal Seek report. So, if you wish to alter the original input assumption to reflect the adjusted value and to view the corresponding Report Family, you will have to open the Primary input data file, make the appropriate change and recalculate the report family. Note regarding Internal Rate of Return Goal Seek: The internal rate of return calculation is solved through an iterative process that determines the discount rate which results in a net present value equal to zero. There are certain cash flow streams for which the internal rate of return cannot be solved which, in turn, makes it difficult for the Goal Seeking process to arrive at the proper adjustment to achieve the desired target within a reasonable number of iterations. This may be the case if you are seeking a desired internal rate of return for the leveraged (after loans) net cash flow. If you should receive a message that the Goal Seek operation has failed to converge on a solution after the maximum number of iterations, you might try this alternate approach: Open the original Primary data file, change the Discount Rate to be equal to your desired internal rate of return, recalculate the Primary Report with this discount rate, and then perform a Goal Seek process for Net Present Value (after loans) requesting a target Net Present Value equal to zero. When this target is achieved, you will see that the Internal Rate of Return on the report is equal to the Discount Rate (i.e., your desired IRR). This solution works because the Net Present Value can always be solved, so there are no discontinuities involved in the interpolation process. How to Use Tract-PIE 3-11

42 The Main Menu with the Goal Seeking Command Button activated: Utilities Command Button Modify Cost Spread and/or Seasonal Sales Percentages: Tract-PIE features stored percentages for producing a seasonally adjusted sales forecast, and for spreading Direct Construction cash flows depending on the start-to-finish intervals. The percentages are referenced automatically when calculating a Primary Report. You may modify the percentages and save them to disk by using the command on the pop-up menu associated with this Command Button. Change Data Directory (Folder): (Refer to the first topic in this section for a discussion of this item) How to Use Tract-PIE 3-12

43 INPUTTING and/or CALCULATING ASSUMPTIONS Most of the commands available from the pop-up menu associated with a Command Button on the Main Menu execute specific input routines that prompt you for your input assumptions related to the particular Report that you have selected. You will be able to create a new set of input assumptions, modify an existing set of assumptions, or merely calculate a report from the existing data file once it has been opened. The discussion that follows pertains to all of the input routines in general. Screen No. 0: The initial screen (General Information / Screen No. 0) sets the stage for the remainder of the input file creation or modification. You will first indicate whether you wish to create a new file or modify an existing file by making a selection from the File menu item which will opened automatically when Screen No. 0 is first presented. It is not necessary to select New as you may simply begin typing your entries into the displayed text boxes. To Open an existing file, you may either click or type the number associated with one of the recently opened filenames displayed on the drop down menu or click Open. The program will display the names of existing files that meet the filename criteria within the data directory folder that you have selected. You may change the search directory if desired. After you select a filename, the program will read all of the contents of that file into memory. You may choose to save your modified file with a new filename by clicking the SaveAs menu selection under the File menu item. Otherwise, the modified data will overwrite (with a warning) the contents of the original file when saved. The program will force you to adhere to the Tract-PIE file naming convention. The remainder of Screen No. 0 deals with setting up the number of columns, the start date, time period type as months, quarters or years (time period column labels are generated automatically based on the start date and time period type), and report headings. How to Use Tract-PIE 3-13

44 Screen No. 0 is shown below: Report References (Primary Report): If you wish to import Actual Values from a file on you disk, or if you choose to make use of the optional front-end Sales & Construction Planning Model or a Cost Detail Planning Model for any of the eligible cost line items, you may request automatic access of the results from any of those reports as input into the Primary Report. You do this by selecting the desired filename for a given labeled text box on the Report References screen. The results will be accessed automatically during report calculation and will be incorporated into the Primary Report. If you pass the results from a Detailed Planning Report, the period-by-period values from that report will supersede the values calculated from the variables input into the Primary Report. The only exception is that a non-zero entry provided for any "Override" input line (i.e., an input data line with "Override", or any shortened form thereof, in its title) will become the final value selected for that time period. How to Use Tract-PIE 3-14

45 The Report References screen is shown below: Automated Import ACTUALS Capability: Tract-PIE features the ability to enter amounts to override the period-by-period calculated values for any line item. This allows you to make adjustments to the forecast or to enter actual values as they become available. In most cases, the remaining forecasted values are automatically adjusted to adhere to a budgeted total after posting the override entries. As a practical matter, the actual values are usually entered into a job cost or general ledger system. This system might then summarize the detailed line items into higher levels and perhaps provide a print out which could serve as a guide for manual entry into a Tract-PIE primary data file. The command button, "Import ACTUALS, appears on the File References screen accessed from Screen No. 0 as part of the Primary Report input routine. Here is a review of the "Import ACTUALS" functionality included in the Tract-PIE program: 1) The file selection box that appears when you click the "Import ACTUALS" button on the "File References" screen will display files existing in your data path folder where the filename extension is required to be <.csv> with the first 2 characters being <tp>. 2) The text on the lines within the file may be anything you want, but to qualify for insertion into the primary data file as "Actual" values entered on the relevant Primary "Override" input line, How to Use Tract-PIE 3-15

46 the first entry prior to a comma must be one of the line numbers from the Index list (which will be provided to you upon request). 3) The format for a comma delimited "Actual Values" line is: A) Line Number for the Override item. B) Any desired title with or without quotes -- quotes required if there is an embedded comma. (This item is optional for readability of the file only -- the program throws it away.) C) As many comma-delimited Actual Values as are to be read in. 4) The line numbers may be in any order, and it doesn't matter if any of them are not included. 5) Any line prior to the first "Actual Values" line may provide a start date (and nothing but the date) in any valid format for a date (e.g., 4/1/2003 or or April 1, 2003 or 1 April, 2003 or whatever date format). 6) If a date is not read prior to the first "Actual Values" line, then the default assumption is that the start date for Actual Values is the first period (start date) for the Primary data file. 7) If a date is read prior to the first "Actual Values" line, then it will be validated as being as/of or after the start date for the Primary data file and as/of or before the final period of the Primary data file. It either of these conditions is violated, a message box would appear informing you of the error and offering the choice of entering a proper start date for Actual Values or of canceling. If the date is validated, then the Actual Value(s) will be inserted as of that date. 8) There may be as many Actual Values (separated by commas) as desired, but any values that extend beyond the final period of the Primary input horizon will be discarded. (Note: the number of periods on Screen #0 of the Primary input could be increased followed by repeating the "Import ACTUALS" command in order to capture the discarded values.) Note: The above is a general description of the functionality that is included with this release version of Tract-PIE. In order to take advantage of this feature, you will need to create or obtain the necessary functionality to output the data from your job cost or general ledger system. If you wish to do so, please contact Customer Support ( ) for more details to assist in your effort. Data Entry Screens: The programs display sequential input screens. Each screen will present several input items at a time and provides a header at the top to describe the items on the screen in general as well as the screen number. Each input item on the screen will be preceded with a short title that is always displayed. In addition, there will be one or two hint lines at the bottom of the screen to provide a more detailed explanation of the particular input item that has the focus. If you are creating new input assumptions, all items will appear with zeros or will be blank until you provide entries. If you are modifying previous assumptions, the entries will be displayed so that you may change them, if desired. You may move among the various input items either by using the mouse to click a desired text box or by using direction keys as displayed on the bottom right of the screen. Selections on the Menu Bar are available to select a desired screen, calculate a value by entering an arithmetic expression, copy the previous entry one period at a time, copy the previous entry through all remaining time periods (whether visible on the screen or not), call for a trend, or to invoke the Help mode. The Tab key or Enter key moves you to the next text box, while Shift Tab moves you to the prior box. You may make a selection from the File menu item at any time. How to Use Tract-PIE 3-16

47 You may want to print out a data input form in order to "pencil in" your assumptions ahead of time by selecting a command under the Data Forms Command Button. Also, the option of printing out of your existing data assumptions from a given file may be helpful before modifying assumptions. An example of a data entry screen is shown below: INPUT SCREENS MENU BAR COMMANDS Commands are grouped in selections on the menu bar. Some menu selections carry out an action immediately while others display a drop down list so that you can select an option. Choosing a selection by using the mouse: Click the item on the menu bar. Depending on the selection, a drop down list will appear or the action will occur immediately. In the case of a drop down list, you may then click the desired option. To close the drop down list without making a selection, simply click outside the drop down box. Choosing a selection by using the keyboard: You activate the menu bar by pressing the Alt or F10 key. Then press the key matching the underlined letter in the desired menu selection. To close a drop down list without making a selection, press the Esc key. How to Use Tract-PIE 3-17

48 File (Menu Bar Command) This menu bar command produces a drop down list with the following sub-commands: New -- Select this command only if you have data resident in memory and wish to begin a new file with the option of saving the current data that is in memory. Otherwise, you may simply begin making entries without selecting New. Open -- Presents a dialogue box displaying available files from the most recently established directory path. You may change the path by selecting a new drive and/or directory (folder) designation which will then change the file selections showing those available in the changed path. Hint lines at the bottom of the dialogue box will inform you of appropriate actions. Save -- Writes the current data file to the disk. If no filename has been established, then the SaveAs dialogue box will appear. SaveAs -- Presents a dialogue box wherein you type the desired name for the file. You may change the path by selecting a new drive and/or directory (folder) designation. The leading characters of the filename must conform with the filenaming convention indicated in the "List Files of Type:" box. Hint lines at the bottom of the dialogue box will inform you of appropriate actions. (Recent Files) -- As you save files in accordance with the filenaming convention associated with the area in which you are working, a list of up to 6 files will be presented beginning with the most recently saved file. You may simply click on a filename or type the number associated with the filename to open that file. Calc / Display Report (and Save)-- Writes the current data file to disk, followed by calling the model processing engine, and then followed by calling the View/Print routine. After viewing and/or printing your report, you will be returned to the point you were at when you invoked the Calc command. Note: If the data entry pertains to a Primary Report, then the drop down menu will present choices for calculating and displaying (with automatic saving of the input file) either the Primary Report, the Budget Analysis Report, or the Executive Summary. The latter two choices will automatically calculate the Primary Report as a first step in order to ensure that the results incorporate any input changes. Main Menu -- Returns directly to the Main Menu. If any changes have been made to the data file in memory, you will be given an opportunity to save the file to disk prior to returning to the Main Menu. How to Use Tract-PIE 3-18

49 A sample screen with the File menu opened is shown below: Report (Menu Bar Command) The Report menu item will automatically Save any changes to your data file followed by calling the processing engine to process the input data with the appropriate Tract-PIE model in order to display the resulting report on the display grid. For the Primary or Consolidation modes, this menu selection is the equivalent of selecting the Primary Report on the drop down menu from the File menu item. For these modes, all reports in the Report Family are calculated so that you may toggle among the other reports in the family. Edit (Menu Bar Command) This menu bar command produces a drop down list with the following sub-commands: Undo (Data Entries) -- Tract-PIE features an Undo capability which allows you to restore the previous entry that existed prior to making a change for any entry on the data screens. The Undo values will be retained for as long as the data file is open (even if you calculate and view the report), and are erased when you close the file or open a new file. If there is no Undo value available for the text box with focus, then the Edit menu drop down list will display Can t Undo with disabled status. How to Use Tract-PIE 3-19

50 Undo Time Series (Data Entries) -- If the text box with focus is part of a time series, then an additional item is presented to Undo Time Series that will be enabled if there are any Undo values from that text box forward in the time series. You may click Undo Time Series to restore all the previous values of the time series from the current text box forward. If there are no Undo values available for the time series from the current text box forward, then the Edit menu drop down list will display Can t Undo Time Series with disabled status. Undo Calendar Date Shift -- On Screen No. 0, if you change the report start date, you will be prompted for a decision to Shift the data entries (Yes) so as to retain the calendar dates for the entries, or to simply retain the sequential orientation for the data entries (No shift). If you choose to Shift the data, certain entries will be lost if they fall off the front end or the back end of the revised time line. The Undo Calendar Date Shift item is available from the Edit drop down list on the menu bar for Screen No. 0 if (and only if) you have changed the report start date and chosen to Shift the data. Clicking this item will restore the original report start date and recover the entries that existed prior to making the selection. This is especially useful if you made the selection by accident without understanding the implication. You could then change the date again and answer No to the prompt for shifting the data. Insert Mode / Replace Mode The cursor behavior is controlled by whichever of these two modes is has the check mark. Insert Mode means that keystrokes typed in a text box would be inserted ahead of the cursor unless text was selected for replacement (highlighted) by double clicking within the text box or swiping specific text. Replace Mode dictates that when you enter a text box, the text will be immediately highlighted such that any typing entered prior to moving the cursor will replace the highlighted text. When in this mode, you must move the cursor to eliminate the highlighting if you wish to insert text rather than replace text. Insert Mode is the default mode when you initiate a Tract-PIE session, but you may click the Edit menu item to change your preference. The selected setting will remain intact for the duration of the Tract- PIE session until a subsequent change is made. Notes File (Notepad) -- Have you ever wished that you could maintain an organized system to store notes about your background calculations, scenario assumptions or other information needed to jog your memory regarding a given set of input data? Now, when you have any data file open in the data entry mode, Tract-PIE offers a selection associated with the Edit menu bar item labeled Notes File (Notepad). Clicking this item will immediately open a text file using the Notepad text editor complete with all of its editing and printing features. The file will carry the same name as the data file you are working on except for a.txt filename extension. If you have previously saved a Notes File having this name, then that file will be opened for you to observe your previous entries and make modifications and/or additions. Otherwise, a new file will be opened for you to begin entering notes. This text file will remain open until you close it. If you click outside of the Notepad window, the window will be minimized to your task bar. You may reactivate the Notepad window either by clicking on the task bar icon or by selecting the Notes File (Notepad) item again. You will be prompted to close the file if it is still open when you exit the data input associated with the file. The file will be saved to a new name if you invoke Save As to rename your data file. The contents of the file may be printed directly from Notepad or easily copied to another Windows application. How to Use Tract-PIE 3-20

51 CopyPrior, SpreadPrior, CurrTotal (Menu Bar Commands) These menu selections are enabled only when a multiple-period input item has the focus. CopyPrior: Causes the value from the previous period to be copied into the current text box with focus, and focus shifts to the next text box. This is a useful way to easily enter straight line values for a designated number of periods. If the first period has focus, then a zero (blank) will be copied. SpreadPrior: Causes the value from the previous period to be copied into all remaining periods whether or not those periods are currently visible on the screen, and focus shifts to the next input item on the screen. If the first period has focus, then zeroes (blanks) will be copied into all periods which is a quick way to zero out previously entered values. CurrTotal: Causes a message box to appear which displays the running total of all entries for the input item up to and including the period with focus. Click OK or press Enter to close the message box. Trends (Menu Bar Command) This menu selection is enabled only when a multiple-period input item has the focus and, when activated, produces a drop down list with the sub-commands described below. Each command will replace the values in the current period and all subsequent periods for the input item (whether or not they are visible) with calculated values according to the trend selected. You will be presented with an input box prompting you for an entry needed to calculate the trend. If the period with focus is the first period, then the prior value is assumed to be zero and certain trends are not allowed resulting in the appearance of a message box to that affect. After you execute a given Trend, the results appear in the periodic text boxes immediately. You will be prompted to confirm that you want to post the results (or you may select Cancel to restore the previous entries). Add to Existing Values -- This trend allows you to indicate an amount (positive or negative) to be added to each existing value in the time series beginning with the time period that has focus. If an existing value is zero (blank) it will remain unchanged. The default entry in the prompt box is 0 (zero) which would leave the existing values unchanged. Factor Existing Values -- This trend allows you to indicate a factor (positive or negative) to be applied to each existing value in the time series beginning with the time period that has focus. The default entry in the prompt box is 1 which would leave the existing values unchanged. Round Values to designated number of decimals -- Often the use of other Trends results in calculated values that may be expressed by as many as 8 decimal positions. In case you might wish to round these values to shorter representations, this trend allows you to indicate the number of decimal positions for rounding (the default selection is zero decimals). Note: the accuracy of the total value of a time series does not suffer from this rounding, e.g., a spread of 100 (as in 100%) displayed to 8 decimal positions will still total to 100 even after rounding to the nearest whole number. Linear from prior value by a specified increment -- Prompts for the increment of change from period to period. Each period will be calculated by adding your input value to the value in the preceding period. How to Use Tract-PIE 3-21

52 Linear from prior value to an Ending value -- Prompts for a value for the ending period. A straight-line increment will be calculated such that when the value for each period is incremented from the prior value, the value in the final period will be equal to your input target value. Total value spread straight-line over designated periods Prompts for a total value to be distributed and the number of periods over which to spread the straight-line amount. The value divided by the number of straight-line periods will be placed in that many periods beginning with the period that had focus when the command was selected. If the number of periods entered would extend beyond the final period, then the number of periods is adjusted to extend to the final period only. Total Value distributed as S Curve over designated periods -- The S Curve is so named because a graph of the cumulative values resembles the letter S. This is the same concept as the area under a Bell Shaped Curve ( a normal distribution). The significance of the S shape is that the trend starts off slowly, accelerates to a peak, and then trails off. This pattern is common in many practical situations including disbursement of a total project budget distributed over several time periods. The new trend selection, Total Value distributed as S Curve over designated periods, prompts you for the total value to distribute and the number of periods for distribution beginning with the period that has focus. The periodic values will be distributed to resemble a Bell Shaped Curve with a peak at the middle and symmetrical values on either side of the middle. For an even number of periods there will be two peak values; while an odd number of periods will have one peak value. Compound prior value by a specified Percentage -- Prompts for a percentage rate for compounding the prior value. Each period's value is calculated by increasing (or decreasing) the value from the prior period by the input percentage. This trend cannot be established while the cursor is in the first period. Average of prior values + a percentage -- Prompts for a percentage to increase average of prior values. The value for each period will be a constant value representing the average of all periods preceding the period with focus increased (or decreased) by the input percentage. The input percentage may be zero which results in simply repeating the average value. This trend cannot be established while the cursor is in the first period. Cycle derived from prior values plus a percentage -- Prompts for a percentage to increase prior cycle values. The values in all preceding periods represent a cycle which defines the basis for filling the remaining periods. The cycle will be repeated with each value being increased (or decreased) by applying the input percentage to the corresponding value from the previous repetition of the cycle. The input percentage may be zero which results in simply repeating the cycle unchanged. This trend cannot be established while the cursor is in the first period. Shift data right or left Prompts for the number of periods to shift the data to the right (positive value) or left (negative value). Data entered in periods prior to the period with focus when the Trend is invoked will remain intact. Copy Data Array to Windows Clipboard: This item is not actually a trend function that will serve to populate the time series text boxes, but rather provides the first step of a powerful Copy and Paste capability. Two other selections from the Trends list, Paste Clipboard Data Array (Overwrite Entries) and Add Clipboard Data Array to Existing Values allow you to populate time series text boxes by either pasting or adding period-by-period values that have been copied to the Windows clipboard. Normally, you would have to copy data array values to the Windows clipboard from an Excel spreadsheet or a Tract-PIE report display before you would be able to use the How to Use Tract-PIE 3-22

53 appropriate Trend function to populate the data into a Tract-PIE time series input item. The Copy Data Array to Windows Clipboard Trend item allows you to copy data entries directly to the Windows clipboard from a given time series item while in the input mode (beginning with the time period that has focus when you invoke the Trend selection). In this way, you may then use these entries to populate any other time series input item(s) by using the appropriate Trend selection to Paste or Add these clipboard values. For example, you may have used a Trend selection to produce a specific disbursement spread pattern that would also be desired for other cost spread items. You could use this Trend selection to copy those spread percentage entries to the Windows clipboard so you could paste them wherever else you needed the same pattern. Paste Clipboard Data Array (Overwrite Entries) --The Windows operating system provides a powerful capability for copying and pasting information to and from the memory resident Windows Clipboard. Tract-PIE users who are familiar with this capability have always been able to copy and paste into specific individual input text boxes. However, the clipboard is also capable of storing an array of text (or data) elements, for example, a range of cells copied from a spreadsheet or from a Tract-PIE report display. Such a data array may be pasted into a range of time-period input text boxes. Assuming that you have copied a data array (usually a range of cells from a spreadsheet or report display), you may paste the data into successive period input boxes as follows: Position the cursor into the time-period text box where you wish the first data element to be entered, then click the Trends menu item followed by clicking the Paste Clipboard Data Array selection from the drop down list. The data elements will automatically be pasted into successive text boxes. If there are more array elements than there are remaining time periods (the time periods need not be visible in the current set of text boxes), then the excess array elements will be discarded. There are a number of ways to copy a highlighted range of cells from a spreadsheet or report display to the clipboard: right-click and select the Copy option, or simultaneously press the Ctrl key along with the C key or the Insert key. Add Clipboard Data Array to Existing Values -- This selection is related to the immediately preceding Trend selection Paste Clipboard Data Array (Overwrite Entries) in that it allows you to paste cell-by-cell data values that have been copied into the Windows clipboard. However, it differs in that it will add the clipboard cell values to the respective values that are already present in the time period text boxes as opposed to replacing the respective text box values. How to Use Tract-PIE 3-23

54 Input Screen with Trends menu item activated: Calculator (Menu Bar Command) This command produces in input box for you to type a mathematical expression. After you complete your expression, you may click OK or press Enter which causes a message box to appear displaying the result. You may then post the result to the text box that had focus when you invoked the calculator command by again clicking OK or pressing Enter. To return to the input screen without posting the result, Click Cancel or press Esc. Arithmetic operators are evaluated in the following order of precedence: Exponentiation (^) Negation (-) Multiplication and division (* or x, /) Addition and subtraction (+, -) When multiplication and division occur together in an expression, each operation is evaluated as it occurs from left to right. When addition and subtraction occur together in an expression, each operation is evaluated in order of appearance from left to right. Parentheses can be used to override the order of precedence and force some parts of an expression to be evaluated before others. Operations within parentheses are always performed before those outside. Within parentheses, however, operator precedence is maintained. How to Use Tract-PIE 3-24

55 SelectScreen (Menu Bar Command) This command produces a large list box displaying the screen headings and screen numbers for the available input screens. The highlighted selection within the list box will be the screen that had focus when you selected this command. You may scroll through the various screen headings which changes the highlighting. You may select a desired screen in any one of the following methods: -- Press Enter or click OK to select the highlighted screen or -- Double click on the desired screen header or -- Type the desired screen number and press Enter or click OK You may click Cancel or press Esc to return to the screen that you were on when you invoked the SelectScreen command. The screen is shown below: How to Use Tract-PIE 3-25

56 Unit Info (Menu Bar Command) This command produces a message box that presents a review of how many Model Units and Production Units you have defined in your product mix. It also displays the number of In- Progress and Spec Units that you have scheduled which then determines hoe many Production Units must be scheduled as Construction starts in order for your Unit Sales to become Unit Closes. Detail Sales Plan / Detail Accounts (Menu Bar Command) (Direct link between Primary Report Input and Detailed Planning Input) Detailed Planning reports consist of the Sales & Construction Planning Report and the Cost Detail Planning Reports which are available for each major cost line item in Tract-PIE. The Sales & Construction Planning Report provides separate modules allowing you to break up your product mix planning process in any way that you wish in order to gain detailed visibility pertaining to sales and construction scheduling and the associated cash flow. Also, each of the major disbursement line items contained in the Primary Report may be detailed out into as many as 150 individual accounts that you specify. Budgetary amounts and disbursement patterns may then be planned separately for each account. Previously, these detail planning functions were accessed by selecting the Detailed Planning command button on the Main Menu. (Refer to the description earlier in this section of the manual.) While that command button is still available, there is a direct link from the Primary Input routine to and from the detailed planning process, thus allowing you to drill down to either the Sales and Construction and/or the Detailed Cost planning areas. When you have finished with the detailed planning process (data input and report creation), you will have the opportunity to return directly to the Primary Input process where you may link the detailed report for import into the Primary Report. The "drill down" function to Sales & Construction detail input may be invoked from any Primary Input screen that deals with sales or construction input. These screens will present a menu bar selection labeled Detail Sales Plan. The same menu bar item will be labeled Detailed Accounts when the input screen pertains to a major cost item that can support a detailed chart of accounts. For all other Primary Input screens, this menu item will be disabled on the menu bar. Message boxes will be presented to explain the process and allow you to choose among options. If you the select the Detailed Accounts option for a major cost item that does not have a previously installed chart of accounts, you will be prompted with the option of creating a chart of accounts before you enter the associated data assumptions and create the detailed cost report. You will be able to go back and forth between the Primary Input area and the Detailed Input area. When you create a chart of accounts for Miscellaneous Cost #1 - #10 (to-be-named cost items), you will have the opportunity to provide your own line title for the major cost item. The line title that you enter on the Primary Input screen for the corresponding major cost item should have the same line title for the sake of consistency. Tract-PIE will automatically assign to-be-named line titles on a matching basis when it loads a primary data file (unless you have already entered a line title which would then be retained). How to Use Tract-PIE 3-26

57 Help F1 (Menu Bar Command) The F1 key is a shortcut key for invoking the Help engine. A general Contents screen will appear from which you may click any of several information categories. Once within a general category, you may scroll among the associated Help screens by clicking the forward or backward scroll symbols ("<<" and ">>") at the top of the screen. You may click Search to search for information associated with a key word or phrase. All of the standard Windows Help engine features are at your disposal. GRID DISPLAY MENU BAR COMMANDS Commands are grouped in selections on the grid display menu bar. Some menu selections carry out an action immediately while others display a drop down list so that you can select an option. Print, Print Preview (Menu Bar Commands) These commands provide the standard Windows capabilities Printing or Print Previewing the contents of the grid display. GoTo (Menu Bar Command) Report Section: This produces a pop up menu displaying the major sections that are available. You may click on your selection to change the grid view to the top of the selected section. The original contents of the grid are still loaded, but this is a quick alternative to navigating the grid contents be instead of using the keyboard or scroll bar capabilities. Line Number -- This produces a dialogue box in which you may enter a report line number that you wish to present as the top line of the display. The dialogue box will initially display the line number for the line that is currently at the top of the display. If the Display Model Line Numbers option is not currently turned on, then this option will be turned on when the display changes. Options (Menu Bar Command) Display (Remove) Column Numbers, Display (Remove) Model Line Numbers: These items allow you to toggle between displaying or removing the Column Numbers and/or Model Line Numbers on the display grid. Depending on the type of report being displayed, there is a default setting as to whether or not the Column Numbers are displayed (e.g., they are turned on for reports with periodic columns and turned off for non-periodic column reports such as the Budget Analysis Report). You may change the Column Numbers option for the current display, but it will revert to the default when you reload the report. On the other hand, the option for Model Line Numbers will begin with your default (initially Off unless you have stored it as On as described below under Reload Report w/ New Selection Parameters). While your default setting remains stored, it will remain temporarily changed for the remainder of your Tract-PIE session in accordance with changes you make using this Display (Remove) Model Line Numbers option. How to Use Tract-PIE 3-27

58 Print with Frame Only, Print with Grid Lines: These two items are mutually exclusive (since the display with Grid Lines includes lines around the outside perimeter) with the active selection being indicated by a check mark. If you want neither of these selections, you may click on the selection with the check mark to turn it off. The default option is Print with Frame Only which will be activated each time you begin a Tract-PIE session. Center Report Horizontally: This is the default (indicated by a check mark) which causes a report to be centered horizontally on the page when there are fewer columns than the page width. This option will be activated each time you begin a Tract-PIE session. You may turn off the check mark by clicking this option which will cause the columns to be left justified on the page. Page Margin Settings, Page Order for Print: Your settings for page margins (top, bottom, right and left) as well as your preference for page print order (across versus down) will be stored in a file along with your other default settings. The margins are indicated in units equaling 1/72 of an inch. The original defaults are: Top = 40, Bottom = 20, Left = 1, Right = 1, and Page Order for Print = Across. You will be subject to the default settings until such time as you indicate a choice for any of these options from the display grid. Your selections will be written to and stored in a file, and you may change your entries as often as you like. Output Grid Contents to.xls Text File: Click this item in order to export the current contents that are loaded in the Report Display Grid into a tab delimited file that may be opened by Microsoft Excel. You will be presented with a dialogue box allowing you to designate the output filename and path of your choosing. A filename being the report name with a.xls filename extension output to your data folder will be presented as a default for your approval. In addition, the special formatting included in the Plan vs. Update Variance Report will be maintained if you choose to output this report to an.xls file. Reload Report w/ New Selection Parameters: This command calls a special form that allows you to select lines and/or columns to Apply ( on the fly presentation) or Save as Default as you reload the report into the Report Display Grid. The options selected (bulleted) will also be stored as your preferred defaults for Display Model Line Numbers, Display with Commas, Format for Negative Numbers, Display Zeros as Blanks, and Display File Name on Report. The report display for a Primary Report, Consolidated Primary Report, Consolidated Mix Report, or Plan vs. Update Variance Report presents a frame with check marks for the various sections of the report in accordance with the default setting stored by your Tract-PIE system. The initial default is for All report sections, but you may change this either as a new default setting or as a one-time selection. Any selections made on the form will be stored if you click Display Report, but will be reset to your previous defaults if you click Cancel (and the report will return to the grid display mode). How to Use Tract-PIE 3-28

59 The form shown appears when you click Reload Grid w/ New Selection Parameters. Custom Column Totaling: Most Tract-PIE reports have columns that correspond to timeperiods (monthly, quarterly, or yearly). The standard display presents a grand-total column as the first and last column with the time period columns presented in between. While you may alter which columns and lines print, those are the only columns available in the report. This command allows you to customize column totaling in any way you like with default assumptions presented as your starting point. For example, the default assumptions for a report with monthly time periods is that you do not wish to display any monthly columns, but prefer to display quarterly total columns with yearly totals inserted and a grand total column at the end. You may approve and print a report with these assumptions by clicking the View/Print command button immediately, or you may alter the default specifications followed by clicking this button. The default number of months in the first quarter and the first year (whether or not you select these periods to print) are displayed assuming the Fiscal Year Start Month Number displayed on the form and predicated on the report start date. It is important that these variables are set properly since this determines which monthly columns should be summed to arrive at the subtotals for the respective quarters and years. Note: You may change the Fiscal Year Start Month Number, and your change will be stored as your Tract-PIE default for all future column totaling including that produced by the Report Periods item on the Display Grid Menu Bar. How to Use Tract-PIE 3-29

60 An example of the specifications form with default assumptions is shown below: Report Family (Menu Bar Command) Whenever a report that is part of the Primary or Consolidation Report Family is loaded into the Report Display Grid, a this menu item appears on the menu bar labeled Report Family. When you click this menu item, you will be presented with the opportunity to select any of the other reports in the Report Family simply by clicking your choice which immediately reloads the Report Display Grid with that report. This allows you to freely toggle among the reports in the family without having to leave the grid. Custom Specs (Menu Bar Command) The Primary and Consolidated Cash Flow Reports consist of several report sections. When these reports are initially loaded in the Report Display Grid, the report sections are loaded in accordance with your stored default report lines specification. This default calls for All report sections unless you have changed your default specification as a feature of the Reload Report w/ New Selection Parameters selection available with the Options menu bar item. You may use this feature to designate various report section combinations without changing your default by clicking the OK/Apply option. However, the Custom Specs menu bar selection allows you to instantly toggle among various report section groupings. When you click a selection, the grid How to Use Tract-PIE 3-30

61 is reloaded immediately. The selections presented on the drop down list associated with this menu item are controlled by a Custom Specifications File included in your Tract-PIE program folder. If you would like to add additional selections to the list, please call customer support for instructions on how to easily edit this Custom Specifications File. Report Periods (Menu Bar Command) Click this menu bar item if you wish to re-cast a time period report with the columns sub-totaled to a higher level (quarterly or yearly for a monthly report; or yearly for a quarterly report) along with a grand total column. The drop down list allows you to select an available report period type exclusive of the type that is already loaded in the grid. The grid will immediately re-load with the columns being presented according to your selection. The sub-totaling and column labels are responsive to your setting for Fiscal Year Start Month Number which defaults to January, but may be changed via the Custom Column Totaling option described above. The Display Grid showing the Report Periods menu bar Item is displayed below: How to Use Tract-PIE 3-31

62 Font Size (Menu Bar Command) The report display grid automatically loads with a standard font size. This font size is re-set every time you reload the grid. This selection on the menu bar that allows you to increase or decrease the font size as percentage adjustments to the standard size. When you select this item, the drop down list will display the currently loaded percentage with a check mark. The available choices are 120%, 110%, 100%, 95%, 85%, and 75%. Once the grid reloads with the selected font size, it will not only be visible on the display grid, but will carry forward to the Print Preview and/or Print routine. Format Cells (Menu Bar Command) You may provide special formatting for selected grid cells pertaining to font, bold, italic, text color, background color, borders, alignment, etc. After you select the cells to be affected, you may click this menu selection in order to invoke the dialogue box. Although these format settings will be retained for the Print Preview and/or Print routines, they will not be retained when the display grid is reloaded with new contents. Sensitivity Matrix (Menu Bar Command) Tract-PIE is most widely used in developing the initial feasibility analysis for a project. The pro forma results contained in a Primary Report and associated Budget Analysis and Executive Summary reports reflect calculations based on one given set of input assumptions regarding the project. Have you ever wondered how sensitive the profitability measures are to the assumed value for a certain key variable? Suppose you wanted to test a range of assumptions for average sales price and the corresponding sales absorption pace. You could repeatedly change the inputs for these variables, calculate the report and then take note of the key evaluation criteria such as Net Profit, Profit Margin, Net Present Value, Internal Rate of Return, and Land Residual Value. To streamline this process, Tract-PIE offers a Sensitivity Matrix feature that allows you to perform just such an analysis in a matter of seconds while displaying the results of up to a dozen incremental scenarios as separate columns of a one-page report. This feature allows you to more thoroughly analyze a project and evaluate its risk profile in a shorter period of time. The analysis begins with a Primary Report that is loaded in the display grid. This Primary Report is considered as the Base Case. You initiate the analysis by simply clicking the Sensitivity Matrix selection on the menu bar in the display grid. The Sensitivity Matrix form then appears offering you a selection of different variables that you wish to isolate for your sensitivity analysis. How to Use Tract-PIE 3-32

63 The form showing list of Sensitivity Matrix variables for your selection: The concept is that you will select a single variable that you wish to study. However, the first two choices involve varying the weighted average sale price by either a dollar amount (the first selection in the list) or by a percentage amount (the second selection), and since price directly affects the sales absorption pace indicated as an average monthly sales rate, you will have the opportunity to indicate your expectation regarding that relationship for each incremental scenario. (If you forget what your assumed average monthly sales rate is, you may quickly click Calc Matrix with only one scenario and observe the display for the Base Case column. Then return to the Sensitivity Matrix form to make your entries.) After you have selected your desired matrix variable by pressing Tab or Enter, you will enter the number of scenarios (from 1 to 12) that you wish to include in the matrix. The form will then present you with the designated number of text boxes (with appropriate labels and hint messages) for you to enter the incremental amounts for your scenarios How to Use Tract-PIE 3-33

64 Sensitivity Matrix form as it might appear just prior to clicking Calc Matrix : Once you have provided the desired scenario specifications, you simply click the Calc Matrix button and, in a matter of seconds, the Sensitivity Matrix Report will appear on the grid. The report presents the appropriate line items for the Base Case report as the first column with each successive scenario as the subsequent columns. When you Close the display grid after you are finished viewing and/or printing this report, you will be returned to the Sensitivity Matrix form with your previous entries being retained. You may make any changes desired for producing another Sensitivity Matrix Report, or you may click Cancel to return to the display grid with the original Primary Report loaded. How to Use Tract-PIE 3-34

65 An example of a Sensitivity Matrix report loaded in the display grid (not all lines show): Goal Seek (Menu Bar Command) For convenience, this menu bar selection provides the same functionality presented as a Command Button on the Main Menu with the exception that you are not required to select the Primary Report as the basis since it will be based on the report currently loaded in the display grid. Several Goal Seeking command choices are available. These selections automatically adjust the Land Acquisition value within a Primary Report in order to achieve a specified target result for project Net Present Value, Internal Rate of Return, Profit as a percent of sales, Profit as a dollar amount or a calculated Land Residual Value that is equal to the Land Acquisition Cost. Where appropriate, you will select a command that dictates whether the target value is based on cash flows before loans or after loans. The financial viability of a development project often hinges on the amount paid for the acquisition of the land. These Goal Seeking commands are of great value during the land purchase negotiation process in that they allow you to determine the exact land acquisition cost that would allow the project to achieve a profitability yardstick that meets your acceptance criterion. Of course, all other assumptions regarding product mix, density, sales prices, absorption, and cost disbursements must be validated before invoking the Goal Seeking process. An altered value for Land Acquisition may affect the Property Tax expense and/or Loan Interest expense depending on your input assumptions related to these items, and these relationships will be accommodated automatically as part of the Goal Seeking process. How to Use Tract-PIE 3-35