In this step in the m&a model, we want to complete the income statement.

I'm going to do the same kind of formula again and again and again that formul.

a is where you take company A's Standalone sales for instance here. Then you take company B's standal and figure in this case against going to be sales. But then you ask are they going to be any adjustments to those Standalone figures? And in this case, we've got some synergies. So they're our deal adjustments.

Pretty add them all up. So a plus b plus the deal adjustments you would get to do Consolidated figure in this case again sales.

We've already done some of these figures for us here for Combined cost of goods sold. I can see I've gone to the acquire Tab and the targets tab to find those Standalone figures you might notice where Now using the calendarized targets figures but also translated into the acquirer's FX or the choir is currency. We've done that for that line item and for quite a few other line items down here as well.

So I'll just be going through the slightly more complicated items.

So I've got my choir sales. I've got my Target sales. I now need any Revenue sales synergies and I can get them from the calc tab. The calstab has Revenue synergies. We're looking in column G here 75.

And if I now add up the three items above that gets me my Consolidated sales.

I then do my growth compared to last year. I don't want to lose those little notes I've made there. So I'll just leave growth rate empty for now.

We then got cogs already done. So my gross profits is going to be the sum of my combined cost of goods sold and my new Co sales give me a figure of 37,697.4 margin can then be calculated? Now sg&e and R&D have already been done. So that's a and b and then A and B, but we've then got some deal adjustments. We've got operating costs related to restructuring and we've got synergies want to put all of them together will be able to calculate the consolidated ebitdar.

Those operating costs related to restructuring we can get them again from their calcsab.

And they're in G11. We've got figure of 200.

For the synergies again. We've got them on a calc Tab and they're just the cost energies we're doing now. We've already done those Revenue synergies. So the costs are of 300.

Why even dark can then be calculated as the sum of all those items and the gross profit which we already had.

We can carry on down.

Now for depreciation, we need to go to the calcs tab. We've got quite a lot that's happens there and scroll down we can see within the pp&e calc. We had Standalone depreciation and that's already for both acquire and targets. That's great.

You then adds on the depreciation savings fantastic? But then we've also got extra depreciation from the step UPS.

Amazon was done. That was the two stands alone figures so we can now calculate events.

and the margin Nor recurring income and income from Associates all done net interest expensible gonna leave empty, but amortization of debt fees. We've got that on the calcstab.

That figure is 50.2. So profits before tax can now be calculated make sure we include that interest figure.

We're also going to leave tax empty tax creates a circular in this model as well as interest. So both of those get left until the end. So Tax Plus PBT equals net income. No controlling incomes done.

And to get reported income to comment shareholders, it would be their net income less. The NCI less that no controlling interest normalize. Net income to come shareholders. That's where you take the reported net income to the common shareholders, but you then subtract out any of that non-recurring income that was in there earlier and we need to make that after tax. So we multiply it by one minus the tax rates. We're going to find that on the assumptions Tab and if we scroll down we can see we've got a new cone marginal tax rate of 30% and I'm going to lock on to that.

Now the diluted was so it's very tempting to think we take company A's and Company B's than any deal adjustments, but Company B.

Those shares have been ripped up. As soon as you bought them ripped them up got rid of them. They don't exist anymore so I can go and get just the acquirers figure from their tab. I'm gonna go down to room 35.

There it is. And I've got it there in G35 but then I want to add on any deal adjustments and we've got that then on the assumptions tab because we issued some new shares the shares issues 149.4. So again, I'm using that same formula company A's figure we didn't use company B's here but then add on the deal adjustments to get to our Consolidated was so weighted average shares outstanding the thing calculate EPS or earnings per share. We then take our normalized net income to the comment shareholders divided by the Wiseau that gives us our EPs and then the dividends what we have to decide are dividend assumption. Our dividend assumption is on the assumptions tab, it's all the way down in the bottom and we're going to pay out 25% which I'll lock and then multiply that by the normalizing income to Common shareholders in row 37.