Once the income statement is being completed, we can work on some calculations in preparation for the balance sheet.

So first we're gonna work on the working capital.

Now during the operational phase, we're going to assume a percentage of sales assumption for our working capital.

So we can take this percentage of sales assumption from our assumptions section, and that would be 20% multiply that times our revenue, and that gives us 20, let's copy this right, all the way through our operational phase.

Now we also need a working capital setup, or a buildup of working capital prior to the beginning of our operational phase.

And this is needed so that we can support sales right as we start our operational phase.

Now in this case, we have an assumption where our working capital setup will be 50% of the first year of operational working capital.

Now we can go ahead and take the total working capital.

I'm gonna start in our first year of the timeline by summing up the working capital setup as well as the working capital operational.

We're gonna copy this all the way, right, and that's our projection of working capital.

Next, we're gonna work on retain earnings.

So we begin with an ending retain earnings prior to year one of zero.

That's gonna be our beginning balance in year one.

Now we can bring down net income from our income statement.

Of course, for year one, I'm just going to link to a blank cell, and then we can add up both rows to get our ending retained earnings.

Let's go ahead and copy this to the right all the way through year eight.

And as you can see, our retain earnings starts building up during the operational phase.

Finally, we can do a base calculation for our common stock.

Let's begin with our beginning common stock balance of zero.

For the common stock issuance, we're gonna take this number from our sources and uses of funds, which is all the way up here.

And you can see here the common stock issued of 54.

We're going to bring that down and we're going to add them up.

Now, we can copy this right all the way through year eight.

And as you can see, our common stock balance is gonna build up during the construction phase, after which is going to remain flat during the operational phase.