Which item is typically included in the uses portion of a sources and uses schedule?

• A. Purchase price
• B. Closing costs
• C. Capex and reserves
• D. Purchase price, closing costs, capex, and reserves

Answer: (D)

The uses side lists all cash outlays required to acquire and fund the asset, not just the purchase price. It covers every amount that must be spent at or around close to finalize the deal and initial stabilization: the purchase price itself, closing costs (legal fees, title, etc.), capex planned for improvements after closing, and reserves set aside for future operating needs or replacement needs. All of these together comprise the total uses, which must balance the total sources (debt, equity, and any other funding). That’s why the option including purchase price, closing costs, capex, and reserves best fits the uses category.