We're going to build a model for a US public company, that's the Hershey company. So let's familiarize ourselves with the layout of this model. At the top here, we have the assumptions for the income statement, the balance sheets, and for net debt and interest. If we continue to scroll down, you'll see that we have the rest of the model below it. We usually lay the model out in the order that we're going to build it. That's the income statement, then the balance sheet, then the cash flow statement.

So the first section is the income statement, which is usually where we start our model build. Underneath that, we have the calculations for the balance sheet, which we usually complete after our income statement. And underneath that we have the balance sheet, which we usually tackle after our balance sheet calculations. Underneath that, we have the cash flow statement, which we usually build after the balance sheet. Underneath that, we have some interest calculations, so that we can calculate interest, income, and expense after we finish the cash flow statement. Now, although the interest calculations are the last step in our model build, if you continue to scroll down, you'll see that we have some operating statistics, and we use those to sense check the outputs from our model. Now, although these are at the bottom of the model, don't be fooled into thinking that they are not important. They are hugely important for making sure that our model hangs together and makes sense. So we must remember to review these at the end of our model build.

So we've now walked through the layout of this model.