an impending cash flow
disaster just over the horizon?
greater of $300 per participant per day or
fixed daily fee
Overview
This one-day seminar is for both relatively new analysts and lenders as well as for experienced analysts and lenders who need to refresh their understanding of cash flows among and between related companies with common ownership and among and between the companies and the owners. By reference to the Uniform Credit Analysis (UCA) cash flow statements, the seminar identifies likely pressures on future cash flows and debt service capabilities for four related companies with common ownership engaged in restaurant management and real estate development.
Identify and appreciate the information requirements necessary to identify cash flow movements between related companies with common ownership;
Identify the relevant balance sheet accounts, and personal financial statement information, that provide the necessary information to trace movements in cash between related companies and their owners;
Identify the cash providers and cash users among the related companies and their common owner and reach tentative conclusions about cash cows and cash hogs among the related companies and their owner;
Construct modified Uniform Credit Analysis (UCA) cash flow statements for each related company and review and examine the initial messages about cash cows and cash hogs by reference to the cash flow statements for each related company;
Review and examine information in the cash flow computations and UCA cash flow statements to understand and identify the likely reasons for pressure on future cash flows individually by company and collectively by related companies and their common owner; and
Use the historical information in the cash flow computations and UCA cash flow statements to understand the implications about future debt service for a single borrower within the group of related companies and determine if the related company cash flow pressures would benefit or impede the borrower’s ability to properly service its interest-bearing debt.
Seminar
Materials
Credit Refresher on Related Party Transactions
Credit Refresher on The ABCs of Cash Flow
Financial Statement Excerpts for Clovis Supply, Fresno Properties, Modesto Services, and Sequoia Properties
Global Cash Flow Worksheets
Modified UCA Cash Flow Worksheets
Personal Financial Statements for Fritz Schumacher
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 information requirements necessary to identify cash flow movements between related companies with common ownership;
Understand the relevant balance sheet accounts, and personal financial statement information, that provide the necessary information to trace movements in cash between related companies and their owners and the reasons why they do so;
Understand how to identify, calculate, and tentatively assess the individual and collective cash flows between and among related companies and their common owner;
Understand how to verify or refute the initial messages about cash cows and cash hogs between and among the related companies and their common owner by reference to modified Uniform Credit Analysis (UCA) cash flow statements for each related company;
Understand how to properly examine information in the cash flow computations and UCA cash flow statements to assess the likely reasons for pressure on future cash flows individually by company and collectively by related companies and their common owner; and
Understand how to use the historical information in the cash flow computations and UCA cash flow statements to assess future debt service prospects for a single borrower within the group of related companies and determine if the related company cash flow pressures would benefit or impede the borrower’s ability to properly service its interest-bearing debt.
Contact Us for information about scheduling an on-site Seminar.
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