Missing from our balance sheet is shareholders equity. We've calculated that up above the income statements in our calculation section.

There it is, ending balance of equity. The only problem is as soon as I put that into my model, that creates a circular, and I get my circular reference warning. That's okay, that is by design. I knew that was going to happen. Why is that? Because the amount of equity I've got that determines the amount of interbank deposits and lending that I have. That then drives your income statements which drives your net income, which then drives equity again. So you go right back to what he started. So I'm just going to put a switch in here to help me turn the circular on and off at will. So we'll delete that out and we'll instead type in that if function. So if, and I now go to my info tab. On the info tab, we have a cell. That cell, at the moment, it's got zero in it and we've named that cell switch. I want to say if the switch equals a one, then value is true. Then go and grab equity, put it into the balance sheet. So let's do that now. I'm going to go and grab equity from cell E57.

What if value is false? What if the switch does not equal a one? In that case, I just want a zero. I want the cell to be blank. So I closed the brackets, fantastic. No circular came through. Why is that? Cause the switch is currently not a one. Copy that all the way to the right and I now need to do two things in order to get this model fully running with the circular on. First of all, I need to turn the switch on, but it still tells me that there's an error. Excel is not allowing the circular to run. So the second thing I need to do is I need to go into Excel options and turn iterative calculations on. And the shortcut to get there is Alt + F + T.

I go down to the formulas section and then I tick enable iterative calculations just there. That means Excel will now allow that circular to run and it'll actually iterate 100 times. So I press okay, I can now see in the bottom left hand corner of the word calculate has appeared instead of circular reference, which it had before. That means it's calculating the circular, that's fine. I now go to the bank model tab and I can see shareholders equity has come through. Just so we can have a look at our final figures, shareholders equity does go up over time into the final year where it gets to 1345.1.