Next we can move on to building the cash flow statement.

The majority of this is pretty standard, one or two things just to be careful with. In this model. Uh, within the operating cash flows, we are gonna be adding back our net financing costs because under Roy's financial statements, they're choosing to, as you can under IFRS, show the interest received as an investing cash flow and interest paid as a financing cash flow.

So I'm gonna build the component parts of the operating cash flows.

So we just need to be careful here in terms of adding back the net finance costs, having a negative sign there to flip the sign around so that any finance expense adds back in here as a positive adjustment.

Next, moving on to the investing and financing flows.

Again, very standard here, just pulling through from the areas where we've already calculated them, as we've seen previously.

One thing different here for a pharmaceutical company is that the need to spend money to develop new drugs to hopefully achieve new patents, is treated within our forecast cash flows.

That purchase of intangibles is spending money on that future development cost and is something we'd expect to see in the future.

And therefore, we do want to forecast next. We just need to pull everything together to get our final cash balance.

I, And then this can be populated into the balance sheet to give us a balance sheet, which now balances.

The only thing left to do now is to calculate our interest income and our interest expense.

So having pulled in the historic debt and cash balances from the balance sheet and the interest expense and interest income from the historic income statements, we can now in our assumptions see that we've populated for our historic interest rates on our liabilities and also on our cash balances, which are being rolled forward into the future through the assumptions, which then allows us to calculate our interest expense and interest income through the first forecast period, and we can then finally calculate our net debt.