Now that we have completed our balance sheet and cashflow statement, we are ready to build our debt schedule. We're gonna begin with our EBITDA and we're gonna work our way down to the cashflow available for debt servicing, also known as CFADs, which is a key metric for bankers lending in situations such as project finance. To calculate our EBITDA, we can go up to our income statement and take our EBIT number, and then we're gonna add back depreciation and amortization. In this case, because depreciation and amortization are negative, we can subtract both the depreciation line as well as the amortization line. Of course, during the construction period, these numbers are blank or zero, but they'll become actual positive or negative values. Once we copy these formulas to the right, that's our EBITDA. Next we can take the tax expense also from the income statement. So let's go all the way up and take it from line 74.

Now we need to take our change in operating working capital. We can get this number from our cash flow statement, and that's the number right here.

Next, we need our cashflow from investing activities also coming from the cashflow statement that is negative 120 in year one. And finally, our common stock issuance of 54. Also coming from the cashflow statement. And notice that our common stock issuance is the only line in the financing section of the cashflow statement that is not related to debt. So if we add these numbers up, we get our cashflow available for debt servicing, which of course in our construction phase it's gonna be negative 66. Now we can take our interest expense from our income statement all the way at the top. Again, this is gonna be for now a blank sale.

Our long-term debt issuance that can come directly from our sources of finances at the beginning of our model. So let's go all the way up and pick out our debt issuance from our sources of funds.

If we add our CFADs and interest expense as well as the long-term debt issuance, we get a cashflow before revolver of 0.

So now we can begin building our base calculations for our revolver as well as our our long-term debt. Our revolver beginning balance is gonna be last year's ending balance. And now we need a formula for the issuance or repayment of the revolver. And in this case, we're gonna use a negative mean formula where we're gonna take the lower off the beginning balance in the revolver and the cash flow before the revolver. Now, the reason we use a negative sign is because this is gonna ensure that if it is a repayment, the number is negative, and if it is issuance, the number is positive.

We use the MIN function to make sure that we don't pay more than is owed in this revolver, meaning that we don't pay more than the beginning balance. But also we make sure that we actually have cash to pay down any outstanding debt in our revolver.

So that's our formula for our issuance or repayment of the revolver. We're gonna add this two to get our ending balance for the revolver. Then we can move on to our long-term debt schedule. First, we need to calculate the cash flow available for long-term debt repayment. And that's simply gonna be the cash flow before revolver, plus any issuance or repayment of the revolver, which of course, in year zero or year one is gonna be 0. So let's go ahead and finish this up by calculating our base calculation for our long-term debt. Our beginning balance is 0. Now we have our debt issue and debt repayment in separate lines. So our debt issue, we can just take this from our long-term debt issuance line in row 134. And for the repayment, we again can use our negative MIN formula negative MIN of our beginning balance and the cashflow available for long-term debt repayment. We close that out and we add these numbers up, and that's gonna give us our ending long-term debt for year one. So the last thing we need to do then is to take all of our calculations from the very beginning, which is our EBITDA. We can copy this to the right all the way through the end of our timeline in year eight of the operational period. And what you'll see down here is that our revolver, actually initially during years three and four, we have issuance because we have a cash deficit in row 135. But after year four, when now the project is profitable and is generating significant cashflow, we can actually pay down the revolver by year six all the way down to 0, after which we can use any excess cashflow to help pay down our long-term debt.