In this workout, Lugano has reported non-controlling interest in the latest financial reports as follows Net income attributable to NCI, non-controlling interests in shareholders' equity and dividends paid on non-controlling interests in the cashflow statement We're then told, if the NCI share of net income grows by 5% i.e. next year and the payout ratio is 20% i.e. of net income then what would be reported in the next balance sheet, for NCI? Well in order for us to do this, we need to work out firstly what our beginning NCI is for next year Our beginning NCI is last year's NCI figure, so 42,800 We then ask, what makes NCI go up? And what makes NCI go down? What makes it go up is net income attributable to NCI, so I'm going to add that What makes it go down? That's dividends paid to NCI, so I'm going to subtract that That will then get me my NCI at the end of the period and that makes BASE (beginning, add, subtract, ending) So let's calculate my net income attributable to NCI next year Well we know, it's going to be last year's net income attributable to NCI But that's going to grow by 5%, so I times that by "(1+5%)" And it's now gone up to 3,003 I now need to subtract the dividends, dividends are going to be 20% of the net income (that's my payout ratio) I'm going to make that a negative So I clearly say I take the beginning, I add then subtract to get my ending I sum the items above and my ending NCI is now 45,202.4 So BASE analysis, very quick and easy way for us to forecast figures like NCI on the balance sheet