Course

Objective:

Learning Outcomes:

• describe the purpose of the operating cycle
• evaluate the risks within the major industry types
• identify the reasons why companies need to borrow
• identify the various borrowing arrangements used to structure a business loan
• define the basic types of legal structures available to businesses
• describe the general characteristic of the four stages in the business life cycle
• describe the financial statement analysis process
• identify and evaluate a borrower's financial strengths, weaknesses, and uncertainties
• compare and contrast the cash method and accrual method of accounting
• construct a balance sheet and income statement on the accrual basis for a company
• explain the components of revenue and the cost of goods sold
• explain the components involved in liability and equity analysis
• describe the considerations a lender needs to consider when using ratios to evaluate financial performance
• identify, calculate, and interpret liquidity, financial leverage, profitability, efficiency, and debt coverage ratios
• describe the two dominant types of cash flow statements and model formats- indirect and direct methods
• explain the importance of pro forma statements for projecting cash flow and loan repayment
• explain the basic
• explain why global cash flows critical when making credit decisions

General Topics: