Analyzing Business Financial Statement and Tax Returns

Course Number: ABFSTR1

Course Code: ABA 193A

An analysis of business financial statements and tax returns, including cash flow statements.

Learning Obj​​​​ectives:
The courses included in Analyzing Business Financial Statements and Tax Returns Curriculum and their objectives are listed below:

Income Statement Analysis
-Explain the components of revenue and cost of goods sold
-Describe operating expenses and net profit analysis

Balance Sheet Analysis
-Identify balance sheet considerations
-Describe the different types of assets—current, other, and noncurrent
-Explain the components involved in a liability and equity analysis

Ratio Analysis
-Describe the considerations a lender needs to take into account when using ratios to
evaluate financial performance
-Identify, calculate, and interpret liquidity, financial leverage, profitability,
efficiency, and debt coverage ratios
-Explain how to use industry data when performing a ratio analysis

Cash Flow Analysis
-Identify cash flow statements and reports
-Describe the two dominant types of cash flow reports—indirect and direct method
-Explain the direct method for operating activities and the importance of pro forma and
cash budgets

The UCA Model
-Compare the formats of the banker-prepared UCA cash flow model and the accountant-
prepared statement of cash flows (SCF)
-Construct a UCA model and interpret the results
-Explain the advantages of the UCA model

Cash Budgets and Pro Forma Statements
-Provide a description of a cash budget
-Explain the purpose of a cash budget
-Describe why a cash budget is a critical tool of financial statement analysis
-Identify key financial information in the cash budget format
-Analyze the cash budget to determine the effect on the operating cycle, working capital,
and capital expenditures

Audience: Commercial and/or Business bankers and Credit Analysts

Prerequisites: n/a

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Member Price: $150.00
Non-Member Price: $200.00
Textbook Charge: $0.00

Credits: ICB: 8.0 CLBB

Length: 6.3 hours

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