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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
Identify the cash and non-cash amounts recorded on major supporting schedules and supplemental statements to Form 1040;
Identify the income and expense amounts used, and excluded, in income tax preparation and, therefore, available or absent for constructing the personal cash flow statement;
Conduct a step-by-step construction of the personal cash flow statement, using selected income tax return and personal financial statement information, to identify the amount of personal cash flow available to support business debt service;
Explore and assess the extent of the guarantor's personal cash flow dependence on cash sources from the business whose debt is supported by the guarantee;
Examine the benefits and limitations in the construction and use of the personal cash flow statement in assessing the value of a personal guarantee; and
Assess the relative roles of cash from personal assets and cash from personal cash flow in determining the value of a personal guarantee.
6 CEUs
Course Materials

Note on Constructing and Using the Personal Cash Flow Statement in Assessing Risk

1999 Personal Financial Statements for Douglas McPherson

1999 Personal Income Tax Returns for Douglas McPherson
2001 Personal Financial Statements for Peter and Jennifer Keys
2001 Personal Income Tax Returns for Peter and Jennifer 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 cash and non-cash amounts recorded on major supporting schedules and supplemental statements to Form 1040;
Identify the income and expense amounts used, and excluded, in income tax preparation and, therefore, available or absent for constructing the personal cash flow statement;
Conduct a step-by-step construction of the personal cash flow statement, using selected income tax return and personal financial statement information, to identify the amount of personal cash flow available to support business debt service;
Determine the extent of the guarantor's personal cash flow dependence on cash sources from the business whose debt is supported by the guarantee;
Understand the benefits and limitations in the construction and use of the personal cash flow statement in assessing the value of a personal guarantee; and
Assess the relative roles of cash from personal assets and cash from personal cash flow in determining the value of a personal guarantee.
Pricing and How to Order