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Welcome back.
Let's complete the financing activity section and see if we can't get our Balance Sheet
to tie out.
Let's start off by making our borrowing being equals to the assumption for the amount we
borrow in 2026.
Then if I copy and paste this all the way down, let's see what that does.
It says go from Assumptions C25, 26, 27, 28, and 29.
If I look on my Assumptions, look that's exactly how I brought it in.
26, 27, 28, and 29.
So the copying and pasting works because the references are just running straight down
that statement.
But there's an important message on the statement that says all numbers that are keyed in to
my Assumptions should be keyed as positives.
That means when we bring those numbers in this Statement of Cash Flows, we need to adjust
the impact on Cash through the formulas.
So Cash Flows from financing would be equal to a positive if we borrowed, minus then a
negative impact if we paid back, plus then a positive if we issue Equity, minus the negative
if we buy back stock, and a minus if we pay dividends.
Thereby our increase decrease in Cash would be equal to the sum of those three categories,
Cash Flows from operating activities, Cash Flows from investing, and then Cash Flows
from financing, giving us an increase of about a million dollars in year one.
Again the modeling technique I'm always showing is by starting in column C, which we always
know is 2026, by making appropriate references, and then copying and pasting it over so that
we can see that our operating activities, our financing and investing activities yield
for us an increase or decrease in Cash that's positive every year for those five years.
And let's see what impact that had on the Balance Sheet.
If we go to the Balance Sheet now, notice that which we had as false before is now true.
So let's go ahead and take that off of the coloring because we want it to say that it's
true now, and we can take that funky looking font off because we have a Balance Sheet that
balances because in our first line we had the change in Cash being dependent upon the
Statement of Cash Flows.
And if we look to our Income Statement, we now see we have fully completed numbers as
well for our Income Statement interest expense.
So let's take that off and reminder that happened because we now have full Balance Sheet numbers
that gave us an average balance that we multiplied by an interest rate to get us to an interest
expense.
We now have the model fully completed and you can check against your answers in the
study where in the appendices under appendix one, it will show you what the actual model's
projections are given our Baseline set of Assumptions.
That completes the core of the model.
We're next in the current set of, let's stop and edit that out.
That completes the current core of the model.
What we're next going to do is add in the four graphs onto the Dashboard to give our
model some visual KPIs to review.
We'll see you there.
45 segments