Level 2: Analyzing Business Financial Statements and Tax Returns
Description: Evaluating & Structuring Commercial Loans – Level 2: Analyzing Business Financial Statements and Tax Returns
Audience: Commercial and/or Business bankers and Credit Analysts
The courses included in the Level 2: Analyzing Business Financial Statements and Tax Returns Curriculum and their objectives are listed below:
Income Statement Analysis
- Explain the components of revenue and cost of goods sold
- Describe operating expenses and net profit analysis
Balance Sheet Analysis
- Identify balance sheet considerations
- Describe the different types of assets—current, other, and noncurrent
- Explain the components involved in a liability and equity analysis
Ratio Analysis
- Describe the considerations a lender needs to take into account when using ratios to evaluate financial performance
- Identify, calculate, and interpret liquidity, financial leverage, profitability, efficiency, and debt coverage ratios
- Explain how to use industry data when performing a ratio analysis
Cash Flow Analysis
- Identify cash flow statements and reports
- Describe the two dominant types of cash flow reports—indirect and direct method
- Explain the direct method for operating activities and the importance of pro forma and cash budgets
The UCA Model
- Compare the formats of the banker-prepared UCA cash flow model and the accountant-prepared statement of cash flows (SCF)
- Construct a UCA model and interpret the results
- Explain the advantages of the UCA model
Cash Budgets and Pro Forma Statements
- Provide a description of a cash budget
- Explain the purpose of a cash budget
- Describe why a cash budget is a critical tool of financial statement analysis
- Identify key financial information in the cash budget format
- Analyze the cash budget to determine the effect on the operating cycle, working capital, and capital expenditures
Course Credits:
ICB: 8 CLBB
Duration: 6hrs:30min
Price:
Member: $150
Non-Member: $200
ABA Library:
Commercial Lending