In this model, Fiat is the parent company of Ferrari. It's looking to realize value from Ferrari. Already done In this model is the firstly, Fiat is looking to IPO a minority stake in Ferrari. And secondly, Ferrari has taken out some debt and paid a dividend up to Fiat, its parent company. So we're now moving on to the thirdly. Fiat debt will be restructured. It's worth pointing out that it's the dividend that was paid up to Fiat that's going to be used to restructure that debt. Let's go down to the step three detail, and in the step three detail we can see that repayment of fiat debt of 2,933, that's the same as the step two dividend 2,933.

So here are our balance sheets. We can see in step one we took the fiat group and we adjusted it for an IPO to find Fiat post-IPO. Then in step two we adjusted just Ferrari's set of accounts for that debt being pushed into it and the dividend being paid up. We're now moving on to step three where we're going to find Fiat balance sheets, post that dividend being received and then paying down some debt. So how are we going to build up this fiat balance sheet? Well, we're going to start with the fiat post IPO balance sheet in column F, and we're then going to add on the adjustments that were made in the Ferrari set of accounts because fiat consolidates Ferrari, any adjustments made Ferrari need to be felt in fiat. We'll also add on the adjustments we're going to make in step three. So I'm gonna copy that down to almost all of the line items but not equity.

And for the subtotals, I'll copy them across from column H And we copy those subtotals from equity over as well. Now what do we do for equity? Well, for everything else, we took Fiats post IPO balance sheet and then added on these two adjustments. But we're not going to do that for equity. The reason for that is that group sets of accounts do not consolidate a subsidiary's equity. And if we did that, what we would be doing is we'd be consolidating an adjustment to Ferrari's equity. We had this 2,933 adjustment to Ferrari's equity here. That was them paying out their dividend. So instead, what we're going to do in J55, so this is Fiats, total shareholder's equity is we're just going to link to the equity they had before all those Ferrari adjustments. We'll also copy that down to the cell below. Exactly the same for NCI.

Now if we scroll down, you might notice that our fiat balance sheet is on balance to the tune of 2,933. Why is this, if we scroll a bit further up, I'm looking here at Fiat's cash and we can see that they had cash of 24583.8 and then there was an adjustment and that was Ferrari paying out their dividend and there was some debt going on there as well. So at the moment, we're accounting for that dividend going outta Ferrari and that cash decrease was consolidated into Fiat. But who received that cash? Well, it was fiat itself. That cash was received by fiat. We should see it coming in again. So we need to put an adjustment here. I'm gonna do that in I30. We're gonna say that cash coming in dividends of fiat of 2,933 dividend received. That looks a lot better. If we go down to the bottom, just check that. The balance sheet's balancing and it is now step three is to use that cash to pay down some debt. So the very first thing we need to do with that cash is then spend it. So I'm going to scroll up.

Repayment of Fiat debt, the exact same amount. So 2,933 came in and 2,933 goes out. And our long-term debt is also going to go down so long-term debts down by 2,933. So cash down, debt down and our balance check comes to zero.