Circularity in a Model
Hey y'all- currently prepping for a modelling test coming up for a role, and was having trouble wrapping my head around the circularity in a model. In what steps do you do the model? How do you approach doing the debt and interest expense schedule? In terms of setting up the model, I do it in these steps:
1. Income Statement Projections (aside from the interest expense line)
2. Balance Sheet Projections
3. What do you do next? Do you build out the CFS as much as you can, and then go to the debt schedule? Theres a PIK component alongside a revolver, and am having trouble know how to tie it into the model so that it is circular.
Thank you for the help!
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