In this model, we can see we've got three years of historical figures. We've got historical revenues, historical operating costs, et cetera. But what we don't have are the subtotals. We don't have EBITDA, we don't have EBIT, et cetera. We'd love to calculate those subtotals. If we could calculate the subtotal EBITDA, you could then check it to the company's own accounts, make sure their number is the same as our number and therefore, we know with some degree of certainty that our formulas are correct. Once we've done those historical subtotals, we could then copy that formula to the right into the projected years, and we'd know that we've got consistent formulas across our rows. So, let's get going. We'll start with EBITDA, and I need to sum up the revenues and that negative operating costs. On a Windows computer, I can press alt equals, or if on a Mac, you can press command shift T and that sums the items immediately above. I press enter. Now, I want to copy this to the right. So, I'm gonna press and hold the shift key, then hit the right arrow a couple of times. And now, to copy to the right, I'm gonna press Ctrl + R.

Great stuff. I need to do the same thing for EBIT. So, I'm going to type in my formula this time, press the R power to get me to EBITDA, and then also, select the D and A, depreciation and amortization. Sum all of them up and that takes me from EBITDA down to EBIT. And again, I can copy that to the right. Earnings before tax, very similar. Grab the EBIT figure and then the figures immediately above, copy to the right. And then net income, very similar again.

But recurring net income is a little more interesting. I'm gonna work in column E here because we've got a non-recurring expense. It's gonna be much easier to explain. What I'd like to do is I'd like to start with that net income of 63 and I'd like to add back any non-recurring expenses. And because we've got a non-recurring expense of 4.7, if we add that back, that will make my profit go up. So, let's do that. We'll start with the 63 of net income. I need to add back the non-reoccurring expense, so I'm going to subtract a negative, so that will add it back. So, that increases my net income or my profit by 4.7. But if I've got more profits, I should be paying more tax. So, what I'm gonna do is I'm gonna multiply that by one minus the tax rate to find the post-tax number. I need the marginal tax rate and that's on the model one assumptions tab, let's go find it.

And here, I've got it and I'm looking at cell E25 because I'm doing my calculation in column E, I want to make sure I'm using my figure here from column E. So, my net income comes from 63 to 65.9 and you might be saying, "Hang on, whoa, whoa, whoa. Should have gone up by 4.7." But hang on, ah, yeah, of course, it's gone up by 4.7, but less the tax, great. I'm gonna press Ctrl + C and then Ctrl + V a few times to copy that to the left.

We need to do pretty much the same thing in the balance sheet. So, down to the balance sheet, my total current assets, I can press alt equals or command shift T. Copy that to the right with Ctrl + R.

Total assets, I'm gonna type my formula in manually, so I can include total current assets and then the items beneath, copy to the right. Total current liabilities, alt equals or command shift T.

Total liabilities, I'm gonna have to type in manually. so I can jump over that gap, there we go.

And then total liabilities and equity, type it in manually, grab those numbers.

Now, for the moment of truth, is it going to balance? We need to do our balance check. So, what I'm gonna do is I'm gonna take my total assets and I'm going to subtract my total liabilities and equity. And if this gives me a zero, it's gonna be amazing. One, two, three, boom. It gives me a zero. What a great feeling and my historical balance sheet is done.