Level II - Personal Financial 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

	Explore and understand the sources of information required to verify all amounts and values on personal financial statements;
	Understand the issues and appreciate the difficulties in assessing the cash liquidation value of specific personal assets;
	Examine the critical role income tax returns can play in verifying personal financial statement information and explore the information content of Form 1040 and selected supporting schedules;
	Assess the amount of cash available to a guarantor over various time horizons in support of business debt service;
	Examine the implicit approach to building personal wealth suggested by personal financial statements; and
	Identify the similarities and differences between personal and business financial statements.

6 CEUs

Course Materials

	Note on Understanding and Using Personal Financial Statements in Assessing Risk
	1999 Financial Statements for Sandover Contractors, Inc.
	1999 Personal Income Tax Returns for Douglas McPherson
	2001 Financial Statements for Information Access, Inc.
	2001 Personal Income Tax Returns for Peter Keys
	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:

	Identify the sources of information required to verify all amounts and values on personal financial statements;
	Understand the issues and difficulties in assessing cash liquidation values of specific assets;
	Understand the role income tax returns can play in verifying personal financial statement information and the information content of Form 1040 and selected supporting schedules;
	Calculate the amount of cash available to a guarantor over various time horizons in support of business debt service;
	Determine the implicit approach to building personal wealth suggested by personal financial statements; and
	Identify and assess the similarities and differences between personal and business financial statements.