greater of $300 per participant per day or
fixed daily fee
Overview
This one-day seminar is for all junior credit analysts and lenders who would like to fully understand the step-by-step construction of a personal cash flow statement and the resulting information provided by the statement about the guarantor’s dependency on business cash sources to support and sustain the guarantor’s life style and personal debt obligations, which allows an estimate of the ready cash support from the guarantor – and an assessment of the financial value of the guarantee – in a business cash flow crisis.
Identify the cash and non-cash amounts recorded on major supporting schedules and supplemental statements to Form 1040;
Identify the income and expense amounts used, and excluded, in income tax preparation and, therefore, available or absent for constructing the personal cash flow statement;
Conduct a step-by-step construction of the personal cash flow statement, using selected income tax return and personal financial statement information, to identify the amount of personal cash flow available to support business debt service;
Explore and assess the extent of the guarantor's personal cash flow dependence on cash sources from the business whose debt is supported by the guarantee;
Examine the benefits and limitations in the construction and use of the personal cash flow statement in assessing the value of a personal guarantee; and
Assess the relative roles of cash from personal assets and cash from personal cash flow in determining the value of a personal guarantee.
Seminar
Materials
Credit Refresher on Distributions and Income Taxes
Credit Refresher on Guarantors and Personal Cash Flow
Credit Refresher on Shareholder Loans and Cash Flow
Personal Financial Statements for Douglas McPherson
Excerpts from Personal Income Tax Returns for Douglas McPherson
Personal Financial Statements for Peter and Jennifer Keys
Excerpts from Personal Income Tax Returns for Peter and Jennifer Keys
Exercises
Solutions
Optional Online Proficiency Exam
Upon
Completion
Participants who closely follow the instructor’s presentation and carefully review the written solutions will be able to:
Understand the cash and non-cash amounts recorded on major supporting schedules and supplemental statements to Form 1040;
Understand the income and expense amounts used, and excluded, in income tax preparation and, therefore, available or absent for constructing the personal cash flow statement;
Properly construct a step-by-step personal cash flow statement, using selected income tax return and personal financial statement information, to identify the amount of personal cash flow available to support business debt service;
Understand the extent of the guarantor's personal cash flow dependence on cash sources from the business whose debt is supported by the guarantee;
Understand the benefits and limitations in the construction and use of the personal cash flow statement in assessing the value of a personal guarantee; and
Understand the relative roles of cash from personal assets and cash from personal cash flow in determining the value of a personal guarantee.
Contact Us for information about scheduling an on-site Seminar.
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