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He deletes the short term debt(481 in H29) into the long term debt sensitising it by (*0) in the short term debt cell and copies the amount into the long term debt cell (H32).
However this omits the fact that the long term debt has to contain a deduction of the short term debt cell in case the short term terb sensitivity is activated again in H29 (*1).
Then in order to be strictly correct the long term debt adjustment then needs to be adjusted for the historical short term debt amount since that is based on the ceiling proportion. This is also evident in the model we discussed in class in September when if the historical balance sheet short term debt proportion of long term debt actually has a number in (it was zero in the course) then the balance sheet will not balance.
In my view the resultant formulas should be as follows in order to allow full flexibility of the model (the more recent LBO model should also be analogously adjusted):
H32:=3464+(22+459)-H29
I32:=SUM('LBO Summary'!V36:V37,'LBO Summary'!V42:V44)-BS!H32-H29
Please confirm or explain. Read More