In this model, Esure owns Go Compare and Go Compare is being spun off from its parents. Here we're going to adjust the subsidiary balance sheet for the new debt that Go Compare is gonna be taking on and the dividend that's going to be paid up to its parents Esure. That debt and dividends was 75 of debts and then a 65.3 of dividends. So here we have Esure's group figures pre the debt and dividends and we made some adjustments to it to add in that extra debt. So the group has extra debt and extra cash of 75. We now want to adjust Go Compares figures. Our starting point is to take Go Compares figures prior to the debt and the dividends. I'll take that and copy all the way down where it's in line with other blue figures.

All subtotals. I'll copy across from the left hand column.

So we've set up go compares balance sheet. It's identical to the prior balance sheet. We now want to put in those two transactions. The extra debt being taken on and the dividend being paid. The debts being taken on will increase go compares cash initially by 75, But the other half of the transaction is that the long-term debt also has to go up by 75 as well. So we'll add that on If we quickly check our balance sheet. Still balances, but as soon as Go Compare, receive that 75 of cash from debt. It then had to pay out a dividend. So that will go out from cash 65.3, but we need to work out the other half of that balance sheet transaction and that other half will be equity. It'll go out retained earnings.

So my retained earnings will also go down by 65.3.

That now gives me my finished go compare balance sheet for step one, it's cash went up and down due to the debt and dividends.

It's long-term. Debt went up by 75 and it's retained. Earnings went down by the 65.3 dividend and our balance sheet balances.