ModeldrillRevolver draw and repayment rule
A financial modeling exercise from Modeldrill. Solve it with a live spreadsheet grid in your browser, with Fill right and Fill down, and it is checked the moment you submit.
The task
The company keeps at least the minimum cash in B2 by drawing on a revolving credit line, and repays the line when it has cash to spare. Fill the opening revolver for later years (row 6), the draw or repayment (row 7) and the closing revolver (row 8). Draw the shortfall below the minimum; when cash is above the minimum, repay as much of the line as the excess allows.
What this exercise teaches
One MAX covers both directions: a positive value draws, a negative one repays, and the floor stops the line from going below zero.
A hint if you get stuck
Minimum less cash is the amount needed. When it is negative it is a repayment, but you cannot repay more than the balance, so the floor is minus the opening revolver: MAX($B$2-B5,-B6). The same rule can be written with IF and MIN.
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