Step 5 says calculate the interest expense and we're going to do that in the debt schedule Let's start with term loan A, we'll come back to the revolver in just a second In term loan A, I'm going to find the interest rate (that's up in my sources and uses of funds) There's term loan A there, if we scroll to the right we can find the interest rate is 2.6% I want to lock onto that I now want to multiply that by some of the debt figures, and I need to decide what I'm going to multiply it by Well I want to multiply it by the average debt balance that I have for the period So I started with 425, I ended with 374 A quick and easy way to take the average of those two figures Is to take the average of this year's ending balance and last year's ending balance So that gives me a figure of 10.5 I want that to be a negative so I'll times that by minus 1 Now I need to do exactly the same for the revolver So I press equals, I scroll up and found the revolver's interest rate Lock it and multiply it by the average of last year's ending and this year's ending Let's do exactly the same for term loan B Find its interest rate Lock and times by the average Getting me a figure of 6, remember I do want these to be negative (term loan B's a negative) And I need to go back and change the revolver interest to a negative as well Now the mezzanine is slightly different, I'm now going to go up and I'm going to find the interest rate (same as before) 8.6 I'm going to lock that But my mezzanine, I know that the balance of that is not going to change I'm instead going to multiply it just by the beginning balance I also want this figure to be a positive here in the debt schedule Because I want my mezzanine loan to go up by the interest that's accruing However when I link this into the income statement, I will want this to be a negative there Senior unsecured notes We go up, find our interest rates 10.8 Lock onto that and again I want to use the average balance here I take the average of the beginning and the ending figures Again I want that to be a negative And the last one is our cash balance Cash, the interest rate here is in a slightly different place I go up to my interest assumptions, there it is 0.5% (I lock onto that) I want to multiply that by the average of the beginning and ending figures That's going to be a positive because it's interest income Let's copy all of those figures to the right We'll see what figures we'll get And we can see from our revolver, not interest at all in the term Term loan A's interest does go down and eventually goes to zero as it's fully repaid Term loan B's interest stays at 6 and eventually starts to go down as that gets repaid The mezzanine loan, the interest gradually goes up because each year I'm taking that interest on a larger beginning balance And the senior unsecured? We know that the beginning and ending balance didn't change at all every period So the interest expense stayed stable