The Cash Available / (Required) Before Debt is calculated by taking the summation of Cash From Operating Activities (CFO); Cash From Investing Activities (CFI); and Cash From Financing Activities (CFF). In the case of our model, CFO, CFI, and CFF should equal $17274; (17,500); and (6,000), respectively, totaling (6226) for Cash Available / (Required) Before Debt.
Now, Cash Available / (Required) Before Debt plus the Beginning Cash on Balance Sheet less Minimum Cash Balance less Mandatory Debt Repayment for 2006 will equal to our Cash Before Discretionary Debt Repayment/ (Borrowing). If this number is negative, it will increase the revolver in our debt sweep. However, if this number was positive, it would be used to pay down any revolver balance in the debt sweep.
In the case of our model, Cash Before Discretionary Debt Repayment/ (Borrowing) should equal (10407) for 2006. The Company used their revolver to pay this balance, hence incurring future interest, which flows through to our pro forma income statement numbers.
Now remember, the revolver is just one form of debt, and is usually the cheapest because of its priority of repayment. We must also include the other tranches of debt, as well as commercial paper. These balances all incur interest expense which is calculated on our interest schedule below the debt schedule, and eventually carried over to our income statement to project our future interest expense and interest income (depending on our cash balance, and the interest rate earned for cash).