In forecasting our cashflow statement, we're on the Deal_Model tab and I'm in column J, the first full year after the stub period after acquisition. Now you might notice if we were to look at column I, this all links to the Deal_Date tab. The Deal_Date tab has everything that happened around the deal. It's got the nine months leading up to the deal. It's got the deal date, it's then got some adjustments. It's then got the figures immediately after the deal and then it's got the stub period. We're now creating the forecast model of all the years that come afterwards so we can't just use those formulas and copy them all right. I'm actually gonna have to build this cashflow statement using figures on the Deal_Model tab using the income statement and balance sheet further up. So for my EBITDA, I'll go out, I'll find that income statement, EBITDA figure of 250 and then we come onto the interest items. Now, the historical net finance charge is going to be zero. We're not gonna have any interest from that at all. However, it is an item in the income statement so we link to it. You might notice that the next item here is interest on revolving credit facility. It's not amortization of OID, which is the next item in the income statement. That amortization, that's a non-cash flow so we're not gonna include that in the cashflow statement. Instead, I go straight down to the interest on the revolver. I can copy that all the way down to interest on high yield. Let's just check where that's coming from. And it is coming from interest on high yield. One other item is not being included in the cash flow statement and that's interest on mezzanine. That mezzanine is a PIK note, a paid-in-kind note. So the any interest expense that we do put through the income statement does not go through the cashflow statement, so we're not going to include that in our cashflow statement below. The next item then is interest income.

Then it's our tax expense and then we move on to the balance sheet. So the first one, increase or decrease in other long-term assets I wanna say last year minus this year. Then we just do the reverse for increase or decrease in other long-term liabilities. I take this year minus the previous year. Then I do something similar for receivables. Go up and find my receivables, and I can then copy that formula down for other current assets. Accounts payable, I can do exactly the same thing again. I can find my accounts payable, calculate the cash flow and then copy that down.

That's my cash flow from operations. So I now move on to CapEx. That's above the income statement in the calc section and I need to make it a negative 'cause it's a cash outflow.

Then our cash flows from financing activities. Here we start with an increase to decrease in revolving credit facility. So that's up in my balance sheet, but it is empty. That's okay. Let's link to those cells. As we fill debt in later on, those figures will then flow through into the cashflow statement.

I do exactly the same for our historical long-term debts. This year minus last, and I can copy that all the way down to issuance or repayments of mezzanine. I'll just check that's coming from the correct line and it is, but you might notice unamortized debt issuance fees are not going into the cashflow statement. The amortization of those fees is not a cash flow, therefore, it won't go in.

After that dividends. That's at the bottom of our income statement and that gets us our cash flow from financing. I'm now able to get down to my ending cash for. I'll start with my beginning cash. I then sum up the operating activities, investing activities and financing to get cash flow for this year, and then sum the two above and I've got my ending cash 1,122.7. Let's go put that up into the balance sheet. Let's make sure the balance sheet balances and there it is. 1,122.7. Now I'd like my balance sheet to balance. Unfortunately, it's not quite going to balance. It's going to be off by this 12. Now that is your unamortized debt issuance fees. Although it hasn't actually appeared here, it has appeared in the Deal_Date. The Deal_Date tab, unamortized debt issuance fees immediately posted over 12.

As the interest items will be filled into the income statement and the debt items filled into the balance sheet and the switch turned on, then the balance sheet will balance.