Here we have the ending cash and equivalents net of revolve balance throughout our five forecast years. This starts off as a negative number in our first forecast year. It then becomes positive in our third forecast year and remains positive to the end of our forecasts. We are gonna use the max and min functions in Excel to take this ending balance and use it to solve for both cash and the revolver in our balance sheet. Let's start with cash.

We're going to use the max function here, and as usual we'll build our calculation in our first forecast year. So we enter equals max open brackets, then zero comma and then the ending balance from our cash flow statement.

Then close your brackets. And when I hit enter I get a zero result. Now that's exactly what we should expect because remember the balance at the bottom of our cash flow statement was negative and we don't want to show a negative cash balance. When I copy that over to the right, we can see that in the third forecast year we are showing a positive cash balance, and that's because that's the year in which the balance of the bottom of the cash flow statement becomes a positive number. Now let's move down to the revolver.

Here we're going to use the min function, but remember we need minus the min function. Open our brackets, then zero comma, and again the ending balance from our cash flow statement.

And then enter. And this gives us a balance of 475.1. Again, that's exactly what we should expect as the ending balance in our cash flow statement was negative, and that means all of the balance is gonna be allocated to our revolver, but because we use a minus sign in our min function, the negative balance is converted into a positive number in the actual balance sheet. When we copy this formula over to the right, we can see that this becomes a zero balance in our third forecast year. That's the year when the balance of the bottom of the cash flow statement becomes a positive number so we don't need to have any revolver balance in our balance sheet. Now that we have our cash and revolver in the balance sheet, the final thing that we need to do is to check that our balance sheet now balances. And when I look at my balance sheet check, phew, I can see that this is showing a zero and that means that my model has integrity because I must have correctly linked up my balance sheet, my income statement, and my cash flow statement.