It's now time to complete the cash flow statement which will help us balance the balance sheet. Cash flow statements in LBO models tend to start with EBITDA in the cash flow from operations as opposed to net income. So we're gonna be starting with EBITDA and then making sure that we adjust properly for the cash items that will impact the cash flow from operations. So EBITDA is already done for us on the income statement, and I'm gonna go and link to that. For the cash interest, we're going to wait, because we haven't done anything with interest yet. But obviously, there's gonna be distinction that we need to make between the actual interest paid in cash and the interest that is picking or being paid in kind. So I don't wanna link my interest here to my income statement interest because my income statement interest is actually total interest expense. And this is where it gets a little bit tricky in an LBO model because PIK interest, many kinds of PIK interest are tax deductible but not cash. And so you need to have all of that interest flowing through the income statement, but we don't want it necessarily flowing through the cash flow statement. So I'm gonna skip that for right now. I am gonna go and pick up my taxes and the taxes are the 31.5 and those are also going to be a cash outflow. For other long-term assets, I'm just gonna go back to my balance sheet and get my other long-term assets and do last year minus this year. For long-term liabilities, I'm going to go and do this year minus last year. For working capital, I have on my calculation already done. I just need to take the change from last year to this year. So that's going to be equals previous year minus current year. And that gets me negative 1.4. I will add up all of these and get my cash flow from operations. CapEx, I'm going to get from my calcs, and CapEx is showing as a positive in my calc because it's increasing the PP and E, but it's a cash outflow, so that's gonna be negative. And now what I can do is simply put in, since I have those placeholders in the balance sheet, just put in the formulas to calculate my change in the debt accounts. So the revolver is being included here as well because the revolver is something that we're going to calculate using our cash flow available for debt, using our cash sweep. So that will be calculated on the debt page and brought back onto the balance sheet, just like the remainder of the debt. So we are including it here in our cashflow statement, in this type of model. The revolver is going to be this year minus last year. And the long-term debt, this is the old debt that was refinanced, that's staying in the model just because we've chosen to keep it in the model. It's really is a relic at this point 'cause we're not ever gonna use that line again. And then the first lien, second lien, et cetera, we can also do this year minus last year and simply just copy down, all the way through the lease liability and the mezzanine is not showing here on the cash flow statement. And the reason why it's not showing on the cash flow statement is because the mezzanine increase is due to the PIK interest. So we will deal with this when we do the debt page and we start to calculate the interest 'cause it is important how we handle this. The common dividends will link these to our calcs page. And these are showing as a negative on our calcs page, so they will show as a negative here. But with any of these kind of zero assumptions or zero placeholder type of numbers, we always wanna make sure that we check them at the end to make sure that we've done them correctly. It's really difficult to keep track of all of these when they're showing as zero. So cashflow from financing activities at this point is zero 'cause we haven't dealt with it yet. And now we can begin the cash analysis. Our ending cash from the balance sheet is the zero that we began with. As of the deal date, that becomes our cash at the beginning of the year. Our net cash flow is the sum of the operating, the investing and the financing cash flows. If we add these up, we get ending cash of 118.3.

And if we go to our balance sheet, we see that we are off by 118.3. So by linking that to our cash flow statement, we will be in balance. Now, we don't, in this model, need a max statement here because the way this model is structured, cash will never go below zero. If we actually need cash, it will come out in the revolver, which is gonna be handled on the debt page. So we can simply link our balance sheet to our cash flow statement and we have completed the cash flow statement and our balance sheet is in balance.