Some cells in the balance sheet can get quite packed with calculations. There's an awful lot of detail that needs to go into those cells Instead of trying to pack it all into one cell, what we can do is create a calculation section and spread those calculations out which makes it really easy to review There is still a couple of cells empty in our balance sheet. First one is cash. But we need to do a cash flow statement for that, the definition of a very large calculation But also net PP&E and equity We're going to do the calculations of net PP&E and equity now So I scroll up the page above the income statement and I can now see that there is a net PP&E section and equity section What I'm going to do, is I need to start with the beginning net PP&E of the year, I'm then going to then add on capex subtract off depreciation to get to the ending PP&E That is BASE analysis. BASE analysis says you start with your beginning, you then add, subtract to get to your ending So I'm going to fill in these cells here I'll start with last year's ending net PP&E and this comes from the balance sheet So we scroll down to the balance sheet, see if we can find that figure 45.0 I now ask myself, where can I get the beginning net PP&E for period 1? Well that's just the same as my ending net PP&E for the previous period 45 I then need to calculate capital expenditure and that's up in my assumption further up the page It's 15.5% of revenues, so I multiply my revenues by 15.5% to get 17.9 Next up I need depreciation. Depreciation is already in my income statement, so I go down and grab that (negative 12.4) And the last thing I can do now is add up everything above So I'll take the beginning, I add the 17.9, subtract the depreciation to get to my ending figure of 50.5 The equity calculation is pretty much the same, I start with last periods ending equity I'll then have this year's beginning And I will then add net income, subtract dividends and then either add or subtract an issuance or repurchase of equity (depending on which one it is) to get to my ending So let's start with last periods ending equity (i.e. period 0) I go down to my balance sheet and equity was 41.0 Now I know that my beginning amount is going to be the same amount 41.0 I now need net income and my net income comes from the bottom of the income statements Net income, that makes my equity go up via retained earnings I then need to subtract dividends and that's in my assumptions further up my page (45% of net income) And I will use the net income just above Next up, issuance of repurchase? Again that's in my assumption further up the page Issuance or repurchase was zero And now I put them altogether. So I take beginning, I add net income, subtract dividends and either add or subtract an issuance or repurchase (in this case I add an issuance of zero) Great! That now gives me two figures that are useful to put into my balance sheet Those two figures are the 50.5 (being the ending PP&E) and the 54.8 (the ending equity) Let's put them into the balance sheet right now So here's my net PP&E, I press equals, I go all the way up to my calculations, 50.5 I do the same with equity, I press equals, I go all the way to the 54.8 My balance sheet's almost done now. We're still missing cash. But if I scroll down, I can see that my balance sheet is now unbalanced by 30.1