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
Price
Member: $150
Non-Member: $200
ABA Library:
Commercial Lending