Analyzing Personal Financial Statements and Tax Returns

4 courses | 6hrs | Credits: 7.25 CLBB

These four courses highlight personal financial statements and tax returns, the analysis of key ratios and adjusted net worth, and the importance of combining business and personal cash flow into a global analysis.

Audience: Commercial and/or Business bankers and Credit Analysts

Award Application and Career Pathing

This course applies to the following awards:

• Business and Commercial Lending Certificate
• Loan Collections Diploma

Courses included in the Analyzing Personal Financial Statements and Tax Returns curriculum are;

• Types of Personal Financial Statements
• Key Ratios and Adjusted Net Worth
• Personal Tax Returns and Cash Flow
• Combining Business and Personal cash Flow into Global Cash Flow

Course Learning Objectives:
After completing these courses, students will be able to:

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