Examine personal financial statements and tax returns, including combining business and personal cash flows into a global analysis.

Learning Obj​​​​ectives​

The courses included in Analyzing Personal Financial Statements and Tax Returns Curriculum and their objectives are listed below:

Types of Personal Financial Statements

• Describe the basic formats for personal financial statements
• Identify the information that is reviewed and verified prior to analyzing the personal financial statement

Key Ratios and Adjusted Net Worth

• Calculate and interpret the liquidity ratio, unsecured debt ratio, and debt-to-income (DTI) ratio
• Perform an analysis using ratios to determine a personal financial condition
• Describe the components of adjusted net worth
• Use adjusted net worth to perform an analysis of key personal asset and liability accounts

Personal Tax Returns and Cash Flow

• Describe the key components of a personal tax return
• Use tax return information to develop a personal cash flow 

Combining Business and Personal cash Flow into Global Cash Flow

• Explain why global cash flow is critical when making credit decisions
• Develop a global cash flow and global DSC for a borrower

Audience

Commercial and/or Business bankers and Credit Analysts

Course Credits

ICB Certifications: 7.25 CLBB