Business Profit and Debt Service

Home | About Us |

Shopping Cart | Contact Us

Online Classrooms

Enterprise Wide License

Unlimited Training for a single annual fee

Webcasts


	Deliver Shockproof! Training Yourself, and upcoming events

Business Profit and Debt Service
is profit really profit?

Target Audience

This short training course is for both relatively new analysts and lenders as well as for experienced analyst and lenders who need to refresh their understanding of the purpose and role of distributions and loans to shareholders in attempting to assess actual business profit available – if converted to cash – to service interest-bearing debt. The course also reviews the necessary conditions for business success and illustrates success or lack thereof by reference to the associated Risk Grid.

2 CEUs

View:

Course Objectives:

	Explore the purpose and role of distributions for Subchapter S corporations, partnerships, limited liability companies, and sole proprietorships and identify how and where distributions are recorded on financial statements;
	Examines the impact of distributions on financial statement profits and business income tax return profits, along with the income tax implications for owners in receipt of distributions;
	Determine the necessary adjustments to reported net profit to account for distributions in arriving at an estimate of actual business profit available to service interest-bearing debt;
	Explore the role of loans to shareholders, their intimate linkage to distributions, and their impact on actual business profit for Subchapter S corporations, partnerships, limited liability companies, and sole proprietorships;
	Examine the considerations that determine whether distributions and loans to shareholders may be considered discretionary expenses or must be considered mandatory expenses; and
	Review the two necessary conditions for business success, review the appropriate measures for the two conditions, and use the associated Risk Grid to establish the risk profile for a prospect or borrower.

Course Materials

	Credit Refresher on Accounting Profit and Business Profit
	Financial Statements for Flooring Designs, Inc.
	Online Quick Quizzes
	Online Closure Questions

Upon Completion

Participants who successfully complete the workshop will be able to:

	Understand the purpose and role of distributions for Subchapter S corporations, partnerships, limited liability companies, and sole proprietorships and understand how and where distributions are recorded on financial statements;
	Understand the impact of distributions on financial statement profits and business income tax return profits and the income tax implications for owners in receipt of distributions;
	Understand the calculate the necessary adjustments to reported net profit to account for distributions in arriving at an estimate of actual business profit available to service interest-bearing debt;
	Understand the role of loans to shareholders, their intimate linkage to distributions, as well as calculate their impact on actual business profit for Subchapter S corporations, partnerships, limited liability companies, and sole proprietorships;
	Understand and appreciate the considerations that determine whether distributions and loans to shareholders should be considered discretionary expenses or must be considered mandatory expenses; and
	Understand the two necessary conditions for business success, the appropriate measures for the two conditions, and the use and application of the Risk Grid in establishing risk profile of a prospect or borrower.

How to Order

Click the "Add to Cart" icon to purchase Shockproof! Training products. Or Contact Us for a personalized review of your credit training needs.

Quick Hits
	Business Income Tax Returns
	Business Profit and Debt Service
	Cash Flow and Debt Service
	The Income Capitalization Approach