Cash Flow Construction & Analysis from Federal Tax Returns provides financial institution examiners, who review various types of commercial credits, with the tools and techniques to construct cash flow statements from federal tax returns and financial statements and then use the results to assess a borrower’s ability to repay debt.
Content is designed to provide foundational information and would enhance concepts covered in Advanced Commercial Credit Analysis and Concepts in Advanced Credit.
The length is four and a half days.
| At-a-Glance | |
|---|---|
| Length | 4 ½ days |
| Delivery | Virtual |
| Prerequisite/Pre-course | Yes |
| Continuing Education | Yes |
Objectives
Upon completion, participants should be able to:
- Analyze individual and business tax forms and schedules and recognize some of the key differences between them.
- Construct borrower cash flow statements using information converted from business and individual tax returns and financial statements.
- Identify cash flow analysis information within a business and personal tax return, including recurring and non-recurring items that may impact sustainable cash flow.
- Identify the interrelationships of a borrower’s various financial activities as presented on a tax return.
- Illustrate cash flow movement between related companies and their common owners.
- Recognize various business entity structures and the drivers of business entity choice.
- Analyze global cash flow to determine the borrower’s primary source of repayment and assess its ability to service debt.
Target Audience
The course is intended for examiners who regularly review commercial credits.
Pre-Course Assignment
A completed pre-course assignment is recommended to attend this course. The estimated completion time is four to six hours.
Continuing Education
Annually the class is assessed for continuing professional education credits.
2026 Approved Credit Hours: 41