The course will begin by examining Accrual Basis and Cash Basis financial statements and the advantages and disadvantages of each. We will then compare the various methods of calculating Cash Flow including the Traditional, EBITDA, Indirect and UCA Cash Analysis Method.
The course will demonstrate how to utilize all accounts appearing on the Income Statement and Balance Sheet to determine the potential sources and uses of cash
What You’ll Learn
Upon completion of this course, the participant will have a good understanding of how cash flow is calculated and more importantly, how to interpret its meaning. Specific areas that will be covered include:
- The advantages and disadvantages of Accrual and Cash Basis financial statements
- Review of the Rules of Cash Flow which are essential in determining how much cash is generated from items on the balance sheet
- Financial Statement Mapping, which illustrates the relationship between the Income Statement and Balance Sheet to calculate cash flow
- Comparison of the UCA method of calculating cash flow to the less effective traditional and EBITDA method of determining cash flow
- A method to calculate Cash Flow utilizing a Modified Cash Flow Analysis Worksheet
Who Should Attend
Senior Loan Officers Credit Analysts Senior Credit Officers Loan Review Personnel Commercial Loan Officers Consumer Loan Officers Branch Managers Credit Administration Support Staff