Bank Management, Branch Manager, Business Bankers, Commercial Lending, Consumer / Retail, Credit Analysis, Lending, Webinar Commercial Lending, Consumer Lending, Credit Analysis, Financial Education, Financial Statements, GSB, Risk Management, Tax Reform
GSB – Business Financial Statements and Tax Returns: Developing and Analyzing Key Financial Ratios
This program covers how to calculate and analyze the basic set of financial statement (or tax return) ratios for operating businesses. Preliminary steps (covered in related programs) include understanding the types of financial statements and level of accountant involvement, distinguishing between cash and accrual accounting methods, and the unique format and features of business tax returns. We now turn to the four primary sets of ratios: (1) liquidity, (2) leverage, (3) profitability, (4) efficiency, and (5) debt coverage. Using a comprehensive case, calculations are demonstrated, as wells as major issues, strengths and limitations of the various ratios. Participants will work from a ratios reference guide that is intended to be a resource for future statement spreading.
Topics to be covered include:
- Basic guidelines for classifying and spreading the data
- Identify the key components of a balance sheet
- Calculate liquidity and leverage ratios for an example business and interpret the results
- Identify situations with positive or negative working capital
- Describe common-sizing of the balance sheet
- Identify the key components of an income statement
- Calculate profitability and traditional cash flow measures for an example business and interpret the results
- Calculate efficiency and debt coverage ratios for an example business and interpret the results
- Explain the use of industry and comparative data within financial analysis
Target Audience: Credit analysts, portfolio managers, assistant relationship managers, community bankers, small business lenders, commercial lenders, consumer lenders, branch managers that lend to business owners, private bankers, special assets officers, loan review specialists, and others involved in business and commercial lending
Presenter
Richard Hamm, Advantage Consulting & Training
Registration Option
Live presentation $330
Recording available through January 10, 2024
Bank Management, Branch Manager, Business Bankers, Commercial Lending, Consumer / Retail, Credit Analysis, Credit Management, Lending, Personal Banker, Webinar Bank Management, Bank Managers, Commercial Lending, Consumer Lending, Credit Analysis, Financial Statements, GSB, Tax Reform
GSB – Business Financial Statements and Tax Returns: Navigating and Analyzing a Business Tax Return
This program unlocks the key issues in analyzing business tax returns by creating a business tax return from a conventional financial statement. This shows the major formatting differences and ways balance sheet accounts and income statement items are labeled differently in a tax return. It also reveals the functions of the various schedules. By using a pass-through entity, we further see how the tax return carefully segregates items that move to an owner’s personal tax return via the Schedule K-1. A final step is creating a chart that “maps” a financial statement to both pass-through entities and a regular corporation.
After this seminar, attendees will be able to:
- For an example business (case), construct a tax return balance sheet (Schedule L), income statement, Schedule M-1 and Schedule M-2 on the cash basis
- Identify key formatting differences between a conventional financial statement and a tax return
- Describe how pass-through entity tax returns separate various income statement items for purposes of allocating them to the owner(s) personal tax returns
- On the Schedule K-1, identify the pass-through items that involve cash, compared to pass-through items that do not involve cash
- Describe the common relationship between pass-through income and distributions to the owner(s)
- Create a chart to compare and align financial statement components to the appropriate tax return schedules
Target Audience: Credit analysts, portfolio managers, assistant relationship managers, community bankers, small business lenders, commercial lenders, consumer lenders, branch managers that lend to business owners, private bankers, special assets officers, loan review specialists, and others involved in business and commercial lending
Presenter
Richard Hamm, Advantage Consulting & Training
Registration Option
Live presentation $330
Recording available through January 3, 2024
Bank Management, Branch Manager, Business Bankers, Cashier/Accounting, Commercial Lending, Credit Analysis, Credit Management, Lending, Personal Banker, Webinar Bank Management, Bank Managers, Commercial Lending, Consumer Lending, Credit Analysis, Financial Education, Financial Literacy Review, Financial Statements, GSB, Tax Reform
GSB – Business Financial Statements and Tax Returns: Components of Business Financial Statement and Tax Returns
Analyzing business financial statements and tax returns starts with understanding the basic components of the balance sheet and income statement, along with the reconciliation of retained earnings, plus footnotes and other disclosures. The business tax return is nothing more than a financial statement with similar components, but with a different format and structure. A second step is to use a diagram, with the components in rough proportion to dollar size, to see how the components “flow” together and interact to create three major financial relationships: (1) Sales to total assets, (2) profit retention, and (3) leverage. A third step is to identify and understand the key principles underlying the three primary methods of accounting, followed by examining an accountant cover letter, if applicable.
Topics to be covered include:
- Identify various financial statement analysis options and tools, plus the basic structure and purposes of financial statements and tax returns
- Diagram the statement components and how they flow together and create three major relationships
- Identify various levels of accountant-prepared financial statements (compilations, reviews, and audits) and related accountant cover letters
- Describe key issues in using internal or company-prepared statements, as well as interim statements
- Compare and contrast the three primary methods of accounting
- Key standards, limitations, and alternatives within accrual accounting or generally accepted accounting principles (GAAP)
Target Audience: Credit analysts, portfolio managers, assistant relationship managers, community bankers, small business lenders, commercial lenders, consumer lenders, branch managers that lend to business owners, private bankers, and special assets
Presenter
Richard Hamm, Advantage Consulting & Training
Registration Option
Live presentation $330
Recording available through December 19, 2023
