Building a cash flow statement for an m&a model is just the same as building a cash flow statement for any other three statement model. We need to get our items from the income statements such as net income and then the non cash flow items and then the rest of the items come from the balance sheet or calcs that support the balance sheets.

So let's go up to the income statement. Let's grab that net income figure.

And then the non-cache items again get them from the income statements start with depreciation. Now, I need to make sure that I turn that negative into a positive remember this is a non-cachary item. It's gone through the income statements. So we add it back. So I'm going to copy that down and we notice that the amortization figure appears, but I still need that last non-cash item the amortization of debt these Again, make that a positive.

Now most of the remaining items just require us to go to the balance sheet and finds the change in each Horizon. So for changing in venturaired up to my balance sheets, I look at last year minus this year and you might notice that the next two items down are accounts receivable and other short-term operating assets. That means I can just copy this same formula down to the next two line items.

Accounts payable I go up to my balance sheets.

The other way around now, it's this your minus last.

And I can then copy that down to the next two line items.

I did the same thing go back up for changing other long-term assets.

last year minus this And then change into third taxes I go back to my liabilities this your minus last.

Again, I can copy that down for two more items.

If I sum all of that up that gets me my operating cash flow 13,183.

Now our only investing cash flow is capex. We've got that in our calcs. So if I go to the calc tab I can see we've got two capex items here the Standalone capex of the acquiring targets and then the capex synergies.

I want to make sure that they are negatives because they're cash outflows and that gets us our investing cash flow.

Now the next two items back up to my balance sheet for my change in long term debt.

I'm going to take this year minus the last and then changing convertible. I can just copy the long term debt formula down that catch is that Dividends was at the bottom of my income statements.

I'm going to change that to a negative.

And that gets me my financing cash flow fantastic some of those three up.

And I've now got my net cash flow. Now. We do something a little bit different here at the bottom. We're going to knit off our ending cash and our short-term debt. That means if the resulting number is a positive number it will be cash.

If the resulting number is a negative number, it will be short-term debt and they will then provide us with the numbers to put up into the balance sheet cash insurance and data currently emptying the balance sheet.

So I want to start with last year's ending cash figure and then I want to subtract the short-term debt.

They'll figure that we get is positive. That means it represents net cash.

So that would become beginning cash next year and what I can then do.

Is sum up the net cash flow and the beginning cache to find out ending cash of 3040.8.

Now again, it's a positive number that represents cash if it was a negative number, I'd want it to represent short-term debt. So, how can I use that to populate the two line items in the balance sheet well to make sure that only a positive number goes in the cache. I'm going to use the max function. I want the maximum of 0 and the number at the bottom of the cash flow statement.

The maximum zero and a positive number is always going to be the positive number. So now we can see that that cash number has populated the balance sheet.

But I want it to be flexible. It may turn negative if I make an edit to my model. So I'm going to use the Min function. I want the minimum of 0 and the figure at the bottom of the cash flow statement.

If the signal was a negative number, then that would be the minimum. It would go up and populate the short-term debts and you might notice I put a negative sign at the beginning to change it to a positive.

So that's my cash flow statement done and my balance sheet balance. And if I copy my cash flow statement to the right and then copy cash and short-term debt in the balance sheet to the right. Then my balance check would balance.