Advanced Financial Statement Analysis
The session will begin with analyzing the four financial statements — Income Statement, Statement of Retained Earnings, Balance Sheet, and Statement of Cash Flows. This will include Revenue and Expense Recognition, FIFO, LIFO, and Average Inventory Costing Models, Operating Expenses (Repairs) versus Improvements, Depreciation including Straight-Line, Units-of-Production, and Double-Declining Balance, Amortization, and Depletion.
The seminar will also explore Accounts Receivable assessment, Allowance for Doubtful Accounts, Intangible Assets, Accounts Payable assessment, Capital and Operating Leases, and analysis of the Equity Section of the Balance Sheet including Partners’ Capital Accounts, Common and Preferred Stock, Treasury Stock, Stock Splits, and Retained Earnings.
Additionally, the types or levels of financial statements will be highlighted including Company-Prepared, Compiled, Reviewed, and Audit. The Audited Financial Statements will include “Unqualified, Qualified, Adverse, and Disclaimer.”
The participant will then be introduced to a “five-part” Financial Statement Analysis Model which will include the Liquidity, Activity, Leverage, Operating Performance, and Cash Flow.
The Cash Flow section will include the business “traditional” EBITDA cash flow and personal cash flow of the “business owner” (using the 1040 tax return, including tax schedules and K-1s, and the personal financial statement). Additionally, the Global Cash Flow or combined “business & personal” cash flow model will be displayed along with Sensitivity Cash Flow Analysis.
The related topics of the Z-Score (bankruptcy predictor) and the Sustainable Growth models will be reviewed.
Two case studies will be used to illustrate the “five-part” analysis model and the “correct” interpretation of the financial statements.
What You’ll Learn
- Analyze the four financial statements including Income Statement, Statement of Retained Earnings, Balance Sheet, and Statement of Cash Flows
- Income Statement issues including Revenue Recognition, Inventory Costing, and Depreciation
- Balance Sheet accounts including Accounts Receivable, Allowance for Doubtful Accounts, Accounts Payable, and the Equity Section
- Financial statement reporting including Company-Prepared, Compiled, Reviewed, and Audit
- Five-part analysis model including Liquidity, Activity, Leverage, Operating Performance, and Cash Flow
- EBITDA, personal (business owner), Global, and Sensitivity Cash Flow analyses
- Z-score (bankruptcy predictor) and Sustainable Growths models
- Seminar concepts through Case Studies
Who Should Attend
Commercial lenders, credit analysts, relationship managers
David L. Osburn, MBA, CCRA, is the founder of Osburn & Associates, LLC, a Business Training & Contract CFO Firm that provides seminars, webinars, and keynote speeches for bankers, CPAs, credit managers, attorneys, and business owners.
His extensive professional background of over 30 years includes 20 years as a Business Trainer/ Contract CFO and 16 years as a bank commercial lender including the position of Vice President/Senior Banking Officer. Mr. Osburn has also been an adjunct college professor for over 30 years including College of Southern Nevada.
Live Access, 30 Days OnDemand Playback, Presenter Materials and Handouts $279
- Available Upgrades:
- 12 Months OnDemand Playback + $110
- 12 Months OnDemand Playback + CD + $140
- Additional Live Access + $75 per person