Saving: As you develop your model, be sure to save it every five minutes or so, just in case.
Format: Use the format in Exhibit 1 as a guide to plan your worksheet. To facilitate sensitivity analysis. It is generally best to place the Input Data at the top of the worksheet. Next, develop the income statement just as you did on pencil and paper. Use Exhibit 2 as you guide. Be sure to tie the cells to the proper percentage rate in the Input Data section. The first time through, enter 0 for the interest. (This is very important for the iteration to work properly.) We will return to it later.