Step 6 is to link the interest expense to the income statement and cash flow statement The first item I'm going to link up is interest on term loan A So I could simply press equals, go up to my debt schedule Find the term A interests The slight problem is that this creates a circular reference So we're going to need to do two things here, we're going to create a switch which means that we can turn the circular reference on and off And secondly we'll need to turn on iterations if we actually want it to work So I'm going to re-write this formula Instead I'm going to say if a particular say which we've named "switch" has a one in it So if the cell (named switch) has a one it, well what's gonna happen? Value if true, I want the interest on term loan A to appear 10.5 Value if false, well if switch does not have one it it, I want a zero to appear here Now at the moment, the switch does have a switch in it and if I show you, it's on the info tab, circular switch is a zero And you might notice in the top left hand corner here, it's been named switched, it's not N12 anymore Okay let's do something similar for term loan B So equals if switch equals 1 Got up to term loan B's interest of 6, otherwise giving me zero Now my PIK note luckily I don't need to do the circular switch here, because my PIK note is interest, it's been calculated on beginning balance I do need to make it a negative though, so I times it by minus 1 Senior unsecure I do need to use the switch because it's been calculated on average balances And interest income on cash, exactly the same again. That's going to be circular because it's been calculated on average balance If switch equals one, go up and find that interest income Otherwise zero The last one I need to do is the revolver, so if switch equals one again Go up and find the revolver interest Otherwise give me a zero Next up I need to link them up into the cash flow statement as well Much more straight forward this one because I've already got the switch in the income statement I can just link the cash flow statement to the income statement So I link the revolver, I link up term loan A and B But here I need to be a little careful because the PIK note does not appear in the cash flow statement So senior unsecured notes I go up, link to that interest and the interest on cash I'm now going to copy all of these figures to the right, so let's copy the income statement first Only the mezzanine lone PIK interest has appeared because the switch is off I now copy my cash flow statement to the right And the PIK hasn't appeared because the PIK isn't a cash line item We now go back up to the income statement and what we're now going to do is turn interest on The first thing I want to do though, is I want to go into my excel options So I go to "File" and then I go down to the formula section And I want to enable iterative calculation, so when I turn the switch on, the circular can now happen I now go to the info tab and on the right hand side, we see circular switch which is currently zero. Let's turn that to one My model is now circular And I can now see that the income statement has changed Interest on revolver hasn't filled in because there wasn't a revolver but term loan A and B interest has now flown through Interest on cash appears just in the final period And if we go down to the cash flow statement We see those same figures appearing again A quick note on this, as I continue through editing the model, I will have the iterations turned off and I will have the circular turned off