Now that the income statement is completed, we're ready to work on our calculations in preparation for our balance sheet, and we're gonna start with our operating working capital.

Now we're gonna work on the operation of period first by forecasting the accounts receivable. So we're gonna take our assumption of receivables days from the sources and uses tab, and that's 30 days. We're gonna multiply that times our revenue forecast from the income statement. We're gonna take total revenues of 330.8 and we're gonna divide this by 365. And that gives us our accounts receivable of 27.2.

Next inventory, we use a similar formula. We're gonna take our inventory days from our sources and uses tab and as 10 days. This time we're gonna multiply times our cost of goods sold again from our income statement, and then we're gonna divide by 365. Now we have to make sure that we change the sign so that we can get a positive inventory balance. So I'm gonna multiply times negative 1, and that's 3.9 inventory balance.

And finally, our accounts payable. We take our days assumption from the sources and uses tab, and that is 30. We're gonna multiply that times our cost of goods sold from the income statement again, and that's 142.9 divided by 365 times negative 1 to flip design. And we get 11.7. So now we can compute our operating working capital and that is equal to receivables plus inventory minus payables.

Now during the construction phase, there will be a bit of an inventory buildup toward the last year of the construction phase. So here we can estimate that inventory buildup using an assumption in our sources and uses of funds tab. So let's go ahead and bring that assumption in. And that is 50% of a normalized level of inventory. So we're gonna multiply this 50% times our forecast of inventory in year one of our operational phase, and that gives us 2. So we can now take this formula and we can copy it to the left so we can see that we have an operating working capital of 2. Finally, let's take our calculation of working capital during the operational year one and copy it all the way to the end of our operational phase.