1. Tour of Buyback
Now, you can see here that we are using the Excel template number
three capital return template. If you didn't get a chance to download this
in the previous lesson, scoop back there and grab yourself a copy and
we're right here in column H of that template. So a great place
to start with this particular template here on the buyback tab is over
at the equity schedule here. We can see that the company is gonna
be spending $5 million on a share buyback, what you could start with
here is the ending balance for common equity that should flow over to
the beginning balance here, and it should enable you to complete this section,
which is referred to as a corkscrew. Now similarly, we're going to have
a corkscrew down here for retained earnings, again, starting with the ending
balance, which you should be able to get from the balance sheet that
will flow into the beginning balance, you can pull in net income,
and that should allow you to arrive at an end balance.
Once these equity schedules are complete, you'd be in a position where you
can fill in the cash flow statement here and fill in the balance
sheet here to get this imbalance ironed out at the bottom and the
balance sheet. Goodluck.
2. Let's practice!