Once we've done the assets, we can now move to the liability section. Again, leave out the revolver because these are the plug items and we're going to leave out cash as well.

And I'm going to do accounts payable. Now in this model we had day ratios, so this is gonna be a day ratio. So I'll divide that by 365. And again, because accounts payable is typically payments to suppliers, it's gonna be linked to cost of goods sold and not revenues. So I'm going to multiply that by cost of goods sold number times minus 1 because I need to make sure it's a positive number. I'm gonna make it black because I'm not worrying about the 365 hard code in there. Some people may, in which case create a separate assumption and then long-term debt. Now this is not a cash sweep model so we probably have an assumption for long-term debt. This is the issuance for repayments. So I'll just take the assumption plus the prior year and then that's the total liability is done. The last item we have for the plugs is the equity section. So I'm going to go to my calculations and the first thing I'm going to do is I'm going to pull in the ending balance of equity from the balance sheet. This is again my anchor. Always do this, always anchor your base calculations with the historical balance sheet. And then the beginning balance is going to equal the ending balance of the prior year and the first projected year. And then net income we will take from the income statement and then we'll go and get dividends, which is an assumption, it's a payout ratio. Multiply that by net income, make it negative, and then do a sum function to add up all these items. So it's a fairly straightforward calculation equity in this case. And now I'm going to wire that into the balance sheet. Again, always checking that the numbers look reasonable. It's important to do that as you go, not at the very end, just look at the trend in the number from one year to the next. Sometimes you do get a weird trend because of a certain assumption you've made, but generally just checking that is a very, very good practice. And of course the balance sheet won't balance because we haven't got the plug items in there yet. So the balance sheet is largely done.