The principal goal of this course is to enable you to analyze the balance sheet and income statement.

What You'll Learn:

• Explain the history and purpose the balance sheet and income statement.
• Demonstrate how common sizing the accounts can be used to help analyze both the balance sheet and income statement.
• Perform horizontal and vertical analysis on both the balance sheet and income statement.
• Define the difference between assets, liabilities and owner's equity.
• Identify both current and non-current assets and liabilities.
• Identify questions to ask management about selected balance sheet accounts.
• Explain the difference between Lifo and Fifo
• Explain the different depreciation methods used with fixed assets.
• Provide definitions for selected balance sheet accounts such as:
• Leases
• Intangibles
• Deferred Taxes
• Treasury Stock
• Additional paid in capital
• Retained Earnings
• Goodwill
• Other comprehensive income
• Examine the balance sheet for liquidity and leverage
• Define the balance sheet and income statement accounts that would be considered primary and secondary sources of repayment on a loan.
• Explain how income serves as one of the principal components of cash available for debt repayment and maintaining company viability.
• Develop questions to ask management about revenues and expenses.
• Explain how cost of goods sold can differ in a manufacturer versus a retailer or wholesaler
• Explain the difference between gross profit, operating profit and net profit
• Identify typical operating expenses.
• Define a fixed versus a variable expense.
• Explain other income and expenses.
• Define extraordinary items.
• Explain how the notes to the financial statements are used to further explain information on the balance sheet and income statement.
  

Who Should Attend:

Commercial lenders, credit analysts, small business lenders, middle market lenders, private bankers; loan review specialists, special assets officers, lending managers and credit officers.