samfrancisjr
New Member
- Joined
- Mar 21, 2007
- Messages
- 1
I need to write a formula in a financial model that will automatically draw on a line of credit to bring the cash balance on my balance sheet to zero. I have done this before but can't remember how to get around the circular reference issue.
For example:
Month1 Month2 Month 3
Cash 100 -50 -75
Account Receivable 150 100 100
Total Assets 250 50 25
Liabilities
Line of Credit 50 50 50
Stockholder's equity 100 100 100
Retained Earnings 100 -100 -125
Total liabilities 250 50 25
In the above example I would to have a formula that would increase the line of credit in month 2 by 50 to bring cash to zero. I get a circular reference when I write the formual that the line of credit balance in month two =if(cash<0, -cash, 0). This creates a circular reference. I know there is a way to get around this with iterations or something else but I need help refreshing my memory.
Thanks!
For example:
Month1 Month2 Month 3
Cash 100 -50 -75
Account Receivable 150 100 100
Total Assets 250 50 25
Liabilities
Line of Credit 50 50 50
Stockholder's equity 100 100 100
Retained Earnings 100 -100 -125
Total liabilities 250 50 25
In the above example I would to have a formula that would increase the line of credit in month 2 by 50 to bring cash to zero. I get a circular reference when I write the formual that the line of credit balance in month two =if(cash<0, -cash, 0). This creates a circular reference. I know there is a way to get around this with iterations or something else but I need help refreshing my memory.
Thanks!
