As you open up this model, a circular reference error warning pops up There are many errors in this model, so we do suggest that you have a go at trying to find them first and then go through this debrief Just to point out though, the circular references have to be dealt with before you can carry on to find the other areas So let's go through them, there are actually two circular errors in this So if your circular error has come up different to my one, then the chances are that I will be dealing with that in a second So I press "OK" And I use my error checking tool, ALT M K C and I go looking for this error. The error is in F130, this should be linking to E85 It should be linking to last year's ending cash, not this year's ending cash So I press enter, copy that to the right, that circular reference disappears However in the bottom left hand corner it says there's still a circular reference, so ALT M K C again And I now find there's one in I24 and I25 What's happened here, is that in F, G and H24 was a very particular formula That operating cost figure has been calculated as a plug of revenues and EBITDA But that does not continue in I, so we have some inconsistent formulas In I24 we need to calculate our formula and that's going to be I6 (the assumptions) multiplied by I23 (revenues) Copy that to the right and the circular reference disappears I now go looking for the remainders And I can see one has appeared in F31 The error here, very tricky one to notice this. Is that if the switch is 1 Give me short term and long term debt But it says that it's net interest expense. That means that we need to subtract off interest income And our interest income is in F152, very tricky error to spot that one So copy that to the right As we carry on down We find that our balance sheet is unbalanced, so we need to go looking for why it is unbalanced And I can see one of those issues is in ending equity in the balance sheet calculations The issue that we have here is that a historical equity figure is being calculated. It should not be being calculated Instead we should be getting that figure from the balance sheet So ending equity, I press equals, I scroll down to my balance sheet Find ending equity There it is, it should be 480,846. Not the figure that we had there before Carrying on down, my balance sheet is still unbalanced And I find in row 102 (if I press F2), that we have not included short term borrowings Very difficult one to find there, because short term borrowings is a zero, that wouldn't actually come up with an unbalance check Copy that right! Carry on down Another issue that would have led to an unbalanced balance sheet is the change in OWC At the moment this says column F minus E, this should be the other way round It should be E minus F, copy right. Big changes in the balance sheet from that one Row 130? We'd already dealt with that circular reference Row 134, this was a nigh on impossible one to find What we've done here is taken cash available to service debt minus any debt issuance/repayment However the repayment is going to be shown as a negative, that means I should be adding that negative repayment to bring my surplus cash down So instead of subtracting, that should be an addition. So again, copy that right One more to find In row 164, if I go all the way to the right hand side, I see there is a zero What has happened here? Well in my first column, what have I linked to? I'm in column F and I've linked to column G. That should be linking to column F, copy that right! And now my model is fixed