Examines the differences between accounting profit and business profit, explores the differences between traditional cash flow, EBITDA, and UCA cash flow, addresses the dangers in using global cash flow as an analytical tool, explores the analytical deficiencies embedded in cash-based business income tax returns, reviews the importance of Net Operating Income vs. estimates of market value for income producing properties, and examines the importance of debt service vs. estimates of market value for owner-occupied real estate.

• Target Audience: Personnel with basic to intermediate credit skills.
• Prerequisites: None.

Examines the relative merits and usefulness of traditional and UCA cash flow statements, reviews the manual construction of the UCA cash flow statement and explores the messages provided by the UCA cash flow statement about borrowing causes, financing requirements, and cash sources of repayment, addresses the limitations of cash-based business income tax returns in assessing risk, and reviews the potential pitfalls inherent in combining business and personal cash flow statements to yield global cash flow.

• Target Audience: Personnel with basic credit skills.
• Prerequisites: None.