So we've just opened up a model that we want to edit, and the first thing I notice is that in the bottom left hand corner, it says the word calculate. That to me says I've probably got a circular in this model. So I'm gonna go to the info tab. And on the info tab, if I just scroll over to the right hand side a little bit, I can see there's a circular switch, and it is turned on. So I'm gonna turn that to a zero, and the word calculate has disappeared. Secondly, I also want to turn iterations off because even though I've turned off my intentional circular, I don't want to accidentally create an unintentional circular, and that'll still run if iterations are turned on. So I press alt, F, T to go into my settings. I go to formulas, and then there it is, enable iterative calculations is ticked. I turn that off. So on the info tab, if we scroll to the bottom, we've got some instructions. And it says, "Edit the model to include the following items, expansionary capital expenditure of 1,400 in 2017." So let's go to model one. This is where we'll make our edits. At the top, we've got some assumptions. Underneath them, we've then got the income statements. And then underneath that, you've got your calculations, balance sheets and cashflow statements. So let's think about the changes we'll need to make. I'm going to need a new assumption for capital expenditure, and I'll put that in the balance sheet assumptions near the current CapEx. Then, in my calcs, we've got CapEx already. I'll want to update that. And in my cashflow statements, I'll want to update the CapEx there as well. So let's start with our balance sheet assumption. I realize now that this is maintenance CapEx. So I want to rename that maintenance CapEx,

So I press shift, space bar, and then control, shift, plus. And I'm gonna call this expansionary CapEx.

Now, because I've inserted a line under percentages, that means these cells are gonna be formatted as percentages. So I'm gonna have to go to my cell styles, make them normal, and then cell styles again, and go back to input. And now I can put my numbers in. I'm going to put a zero in every single period, but I then remember in 2017, we needed that 1,400. So that's my assumption done. I now want to go down to my calcs section. And in calcs, we've got CapEx. However, I remember that is now the maintenance CapEx. I want to insert a new line for expansionary CapEx.

I put the new line in there so that anyone who inherits this model can very quickly and easily see that it's in there and link back to its own assumption. So I'm gonna link up to the assumption, expansionary CapEx of zero, and I'll copy that to the right, done.

But now I need to make sure that it's being included in the ending long-term assets. So I check that formula, and it is including that figure already of 1,400.

So ending long-term assets has gone up dramatically to 7,608.5. Let's go down to the balance sheets, and we'll just make sure 7,608.5, it has gone in. Lastly, I want to include that CapEx in my cashflow statement. I remember that this initial CapEx that's here, that's the maintenance CapEx. So I'll label that properly and I'll put the expansionary CapEx underneath.

The line above links up to the calcs and times by the minus one. I want to do the same thing here. So link up to calcs, times by the minus one, copy it to the right, and that 1,400 cash outflow of CapEx has come through. Let's make sure it's going through to the investing cash flow, and it's not. So I need to redo that investing cash flow, sum upwards and to the right. And I can see that that has now changed. At the bottom, my ending cash has now dropped significantly because we've got that big net cash outflow. So 1,160, we'll make sure that's gone into our balance sheets 1,160. The only other thing that comes to mind is that extra CapEx should mean extra depreciation. So if we go to our calcs, I see that we don't have any extra depreciation in the year of the CapEx, but we do the following year. That's okay because my assumption for depreciation and amortization is that it's a percentage of my beginning balance, and the beginning balance will only increase in the year after the extra CapEx. Last checks then. Let's go to our balance sheet. Let's make sure that it balances. And it does balance every period. I'll now go to the info tab. I want to turn my iterations back on again. I get the circular warning, so alt, F, T. I click on formulas, enable iterative calcs.

And now I've got my finished balance sheets. So we'll just have a quick look. It still balances, yes. And let's go up to our income statement, make sure that interest is coming through, and it is.