We will now set up our income statement to calculate income before tax. However, we won't be able to actually compute these figures yet because we do not know the levels of debt/cash upon which interest expense/income in each year is to be calculated. Still, this step is a necessary precursor to setting up our cash flow statement and continuing our modeling of the balance sheet. Note that we have left room for the interest expense/income associated with each debt instrument/cash in the capital structure.
Note that in the "Other (Income) / Expense" section we linked to the amortization of capitalized financing costs calculated in a previous step. Similarly, we linked to the gain/loss on the sale of assets assumed when we began building the tax schedule. We also added an input for an annual sponsor management fee in the assumptions section at the top of our model, and linked to that here as well. Additionally, note that we expensed transaction fees and expenses in the current period in accordance with our prior assumptions.
Subtracting net interest expense and net other expenses yields income before tax.