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| Course Objectives |
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Understand the purpose and implications of
distributions, loans to shareholder, and one-time events in
adjusting reported net income, primarily for non-Subchapter
C corporations, to arrive at an estimate of actual business
income for a company; |
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Understand the importance of a) determining
it distributions and loans to shareholders exceed the implied
personal income tax obligation on company profit for non-Subchapter
C corporations and b) the follow-on implications for actual
operating expenses, EBITDA, and EBITDA %; |
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Understand the critical differences between
the FASB 95 statement of cash flows and the Uniform Credit Analysis
(UCA) cash flow statement and the adjustments necessary to transform
Net Cash Provided by Operating Activities from a FASB 95 statement
of cash flows to Net Cash Income on the UCA cash flow statement; |
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Explore the construction, use, and application
of the UCA cash flow statement in identifying borrowing causes,
related party transactions, financing requirements, and financing
sources in assessing risk; |
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Using specific measures for profitability and
cash flow from business operations, establish a company's position
on the Risk Grid and track shifts in its risk profile from period
to period between the prosperity, operational illness, strategic
illness, and terminal illness quadrants; and |
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Examine possible loan covenants that, if honored,
would assure a borrower's revenue would exceed all expenses
after adjustments for one-time events, distributions, and loans
to shareholders. |
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| 6 CEUs |
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| Course Materials |
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Note
on Key Ratios and Risk Assessment |
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Note
on Cash Flow Formats and Risk Assessment
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Note
on Constructing and Using Cash Flow Statements in Assessing
Risk
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1999 Financial Statements for
Benson Manufacturing, Inc. |
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Loan Officer Summary for Benson
Manufacturing, Inc. |
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Loan Officer Memorandum for
Benson Manufacturing, Inc. |
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1999 Financial Statements for
Sandover Contractors, Inc. |
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Loan Officer Summary for Sandover
Contractors, Inc. |
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Loan Officer Memorandum for
Sandover Contractors, Inc. |
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Exercise Set (downloaded from
Shockproof! Training website) |
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Online Review Quizzes |
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Solution Set (downloaded from
Shockproof! Training website) |
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Access to the Shockproof!
Training Resource Center |
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Inclusion in the Shockproof!
Training Discussion Forum |
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Online Credit Skills Proficiency
Exam |
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| Upon Completion |
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Participants who successfully complete the workshop will be able
to:
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Make the necessary adjustments to EBITDA, or
the Cushion, should distributions and withdrawals exceed the
implied personal income tax obligation on company profit; |
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Make the necessary adjustments to reported
net income for distributions and withdrawals, gains or losses
on sale of assets, and other one-time, non-recurring events
to arrive at actual net profit; |
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Make the necessary adjustments to Net Cash
Provided by Operating Activities from the FASB 95 statement
of cash flows to transform that amount to Net Cash Income on
the Uniform Credit Analysis (UCA) cash flow statement; |
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Understand the use and limitations of both
the FASB 95 statement of cash flows and the UCA cash flow statement
in assessing borrower risk; |
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Properly construct, use and apply the UCA cash
flow statement in identifying the source of cash to pay interest
expense and repay debt as scheduled, along with determining
selected borrowing causes, the financing requirement and the
external sources of cash to meet the financing requirement;
and |
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Structure and apply a loan covenant that will
assure actual bottom line profit for non-Subchapter C corporations,
if honored. |
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| Pricing
and How to Order |
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