Level 3: Analyzing Personal Financial Statements and Tax Returns


Description: Level 3: Analyzing Personal Financial Statements and Tax Returns moves into personal financial statements and tax returns, including combining business and personal cash flows into a global analysis.

Audience: Commercial and/or Business bankers and Credit Analysts

The courses included in the Level 3: 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

Course Credits:
ICB: 7.25 CLBB

Duration: 6 hrs

Member: $150
Non-Member: $200

ABA Library:
Commercial Lending