Level II - Business Cash Flow Statements

Target Audience

This course is for all junior credit analysts and lenders. It may be appropriate as a refresher for more experienced analysts and lenders.

Level II
211		Business Cash Flow Statements
221		Personal Financial Statements
231		The Personal Cash Flow Statement

Course Objectives

	Provide a clear understanding of the structure, composition, and analytical importance of the Uniform Credit Analysis (UCA) cash flow statement;
	Master the process of manually constructing the UCA cash flow statement from income statement and balance sheet information;
	Identify the impact of distributions, related party transactions, and shareholder loans in providing or draining cash from a business;
	Identify the borrowing causes that explain a deficit at cash flow from business operations;
	Identify the amount of outside cash required by the prospect or borrower to run all dimensions of the business; and
	Identify the source of outside financing used to meet the financing requirement.

6 CEUs

Course Materials

	Note on Constructing and Using Cash Flow Statements in Assessing Risk
	1999 Financial Statements for Sandover Contractors, Inc.
	2001 Financial Statements for Information Access, Inc.
	2002 Projected Financial Statements for Information Access, Inc.
	Exercise Set (downloaded from Shockproof! Training website)
	Online Review Quizzes
	Solution Set (downloaded from Shockproof! Training website)
	Access to the Shockproof! Training Resource Center
	Inclusion in the Shockproof! Training Discussion Forum
	Online Credit Skills Proficiency Exam

Upon Completion

Participants who successfully complete the workshop will be able to:

	Properly construct a business cash flow statement and identify a borrower's cash surplus or deficit from business operations after paying interest expense and repaying debt as scheduled;
	Identify the differences and similarities between the FASB 95 statements of cash flows, a modified Uniform Credit Analysis (UCA) statement of cash flows, and the full UCA cash flow statement;
	Use business cash flow statements to identify the sources of cash to pay interest and repay debt as scheduled;
	Use business cash flow statements to suggest and identify borrowing causes;
	Identify movements in the Business Drivers to explain and verify borrowing causes; and
	Use and apply business cash flow statements in identifying the amount and source of outside financing required to meet cash flow deficits.