The next thing we need to do is complete the model. Now the model just needs a cashflow statement to be done. Then the cash and debt from that will fill in to the balance sheet, and then interest on the cash and debt goes into the income statements.

Let's go have a look at those numbers. So here's the cashflow statements. It has been built for us and I've got my formulas available on the right hand side here to help you understand it. But I want to just focus on a couple of items that I think are more important than the others. The big one for me is this change in net operating lease assets. What's going on there? Well, we take last year's minus this year's, but what is it? It's last year's net operating lease assets, and this is where we take the operating lease assets minus the operating lease liabilities. And if we check what's happened, the operating lease assets have really taken off. They've really increased because we changed our assumptions 'cause of the fulfillment centers. So new fulfillment centers meant new operating lease assets meant big increase. We've assumed that the lease liabilities will increase at the same pace. This means our net of the two stays flat and this gives you a much simpler cash flow statement and is a reasonable simplification in a model.

Other items we see in the cash flow down at the bottom, we've taken ending cash net of short-term debt.

There's your cash minus the short-term debt.

This means that going forward, your ending figure, if it's positive, will be cash and if it's negative will be short-term debt. And if I go up two, the balance sheets, we've used a max function to grab all of the positive figures and put them in cash, and we've used a min function to grab all of the negative figures and put them into short term debt.

Finally, we need to do interest. Interest has been calculated at the bottom here on net debt.

That interest then needs to go up into the income statements and it's going to create a circular. So we've used this formula if the switch, if a circular switch is on, if it has a one on net, give us F1 11, which is interest.

That switch is on the info tab. There it is. It's been named switch. I'll need to turn that on and I'll need to enable iterative calculations. I'll do that by pressing file options. Then going to Formulas and enable iterative calculations. If you're working on a Mac, you'll go to Excel preferences and there you'll be able to enable iterative calculations.

I then turn the switch on back to activity and my interest has now filled in.