Here we want to build the Consolidated balance sheet and there's a couple of things we're going to need to do here firstly we're going to need the balance sheet from the previous year IE from the deal date.

That's relatively easy. We'll get that from the opening balance sheet, but then we're gonna have to build it one year on how do we do that? I'm going to use our consolidation formula. We're going to take the acquirers balance sheet figure plus the target's battery figure and then we'll ask whether any deal adjustments. Some items will be just deal adjustments because they only happen because of the deal.

So let's go and get the opening balance sheet figure to start with I can go to the opening balance You tab? Link to the cache in the final column, and I'm just going to copy that down.

And then sum up to get my total assets. I'll then do exactly the same thing for my short-term debt.

Link to the opening balance sheet tab that short term debt was Zero.

Copy that down.

And then sum it up at the bottom.

I'll then do the bounce check out the bottom just to make sure it bounces. So total assets minus the total liabilities and equity and I get zero fantastic.

So now we move on to the forecast year and a few items. We're going to leave empty for now cash is certainly one of them, but then we move on to inventory. And remember this is the acquiris figure plus the targets figure we'll do that to start with then we'll put through all of our adjustments.

So the acquire is imagery figure I go to the acquire tab. I find their inventory in g54. They'll answer add on to that the target's figure from the counter eyes Target tab.

And again that's going to be in g54.

I can now copy paste that down to a couple of extra cells leave their next two blank just for seconds then copy down to other intangibles and keep going.

Once you get down to the long-term debt, unfortunately, we've then got two new items that have come in. So unfortunately break our Matrix Integrity. So I'll go down to the third taxes and then I'll just build that formula again. So it goes to the acquire tab find the Deferred taxes.

And then do exactly the same on the target tab.

Find those deferred taxes.

And once again, I can start copying that down fantastic a great start. I've got a choir plus Target in loads of different cells. Now, I need to go down through them again and just see if there were any adjustments that need to be made inventory. Nothing happened to inventory because of the deal we didn't step up inventory. We didn't throw any of it. We have it's had a step down and but the first thing we do get to where there was a difference was pp&e. We actually just side calculation of this. It's on the calcs tab, there's our PP and E calculation and I'm going to grab that from G30.

now Goodwill We have to think what's happened here the figure in f49 that's from the opening balance sheets and the Goodwill that's been paid because we may have given our clients some advice. Hey, we think this is how much you should pay for the Target.

The only thing we would really possibly do to that Goodwill is then impair it in the next year. However, that would imply that our advice hadn't been worth very much if we're suddenly impairing the amount that we have advised them to pay. So we're going to keep that flat good will be the same as last year.

So lessets, I can copy that from the left hand side and it sums up everything above.

One will change I did want to make though was the other intangible at the moment. I've only got the acquire plus the target, but there was one extra thing that we had done here.

We recognize some new intangibles on the assumptions tab if we go to the assumptions tab.

It was the brand spanking new brand value the 14,265. I'm going to lock that. So that's now being included. Look at those other intangibles. There's only jumped up to 27,092.

That gets me through all of my assets. So we now moved down to the bottom half.

Short-term debt will do that after the cash flow statements, but the first item, I think there's a big change is going to be long-term debt.

Here again. I've got a choir plus Target.

but that's a strange one because what if I'm refinancing the target's net debt, and again if I go to the assumptions tab I can see row 35. We've got a refinance switch. We've actually named that refinance.

And it's got one in it meaning it is being refinanced right now. So I don't actually want that counterwise Target figure in here. What I'm going to do. I'm gonna multiply that by one minus the refinance switch. So if the refinance switch is on and multiplying it by a zero in the brackets But they're still one extra deal adjustment. We may have had we may have taken on extra debt. And that's exactly what has happened here. We've calculated that on the calcs tab, we can see that in row 50. We've got the ending long-term debt already forecasted out.

So we've got the acquiresets plus no target debt plus the new debt from the deal.

Another one we've got is the convertible bonds. We'll just make that equal to last year. It's unlikely that's going to be paid off so quickly and the debt fees they're on the calc stab. We've already forecasted what's going to happen to them. We can see they go from 250 to 200. However, we need to make sure that becomes a negative because debt fees are netted off the long-term debt. You think the long term dick onto the bounce sheets and you net off the fees.

Another one. We need to make an adjustment to is the Deferred taxes. We've got step up on pp&e here and that created a deferred tax. So I'm going to take the acquire plus the target original figures, but then add on the new deferred tax because of the deal that's on their calcstab.

And it's worth 5,292.3 add that on as well.

The only other item to look at is our shareholders Equity. So we're gonna start with that being last year's figure and I think that's going to change here is retained earnings. What makes retained owners go up or down it goes up with an income and then down with dividends. So I'm going to add on to that net income from the income statements and we're gonna look at reported net income to Common shareholders, but we don't retain all of it. So I'm going to subtract off the dividends.

I can now copy my total liabilities and empty figure across and we've got to figure 148,014 and if you note underneath if I copy that balance check over. I'm unbalanced by 3,040.8 now initially. This makes me feel very nervous, but why should I not be nervous? Because we still haven't done our short-term debt and our cash.

Their cash flow statement will provide both those figures.