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Product ID: 406935EAU
 
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Income Statement Analysis for Banking and Financial Professionals

OnDemand Webinar (88 minutes)

Gain an understanding on the fundamentals of how to prepare an income statement analysis for bankers and financial professionals.Understanding financial statements is paramount to all banking professionals involved in performing credit and cash flow analysis on prospects and existing borrowing customers. This essentially includes all personnel in the Credit Administration Department of financial institutions. This information is intended to introduce and strengthen the knowledge and importance of understanding the financial statements with an emphasis on the Income Statement. We will start by defining the purpose of the Income Statement and will proceed to review each account common to most statements so that you can have a deeper understanding of each their meaning. We will also demonstrate the relationship between the Income Statement and the Balance Sheet and how the Income Statement affects the creation of accounts on the Balance Sheet. This understanding will enhance a banker's ability to interpret the results of ratio analysis and detailed cash flow analysis.

Authors

Jeffery W. Johnson, Bankers Insight Group

Agenda

Review the Accounting Revenue Recognition Assumption to Determine When Revenue Is Realized and Realizable According to Generally Accepted Accounting Principles

Learn the Effects of the Cash and Accrual Basis of Accounting on Revenue, Costs and Expenses and the Advantages/Disadvantages of Both Accounting Methods

Review the Major Accounts on the Income Statement to Determine What They Represent and How They Are Created

Determine the Key Ratios Required to Analyzing the Strength of the Income Statement and Their Ability to Produce Net Income

Observe the External Factors That Influences the Accounts on the Income Statement

Demonstrate How the Income Statement Is Utilized to Calculate Cash Flow Utilizing the Uniform Cash Analysis Method

Review the Various Types of Income Statements to Match the Various Types of Business Operations

Illustrate How the Income Statement Is Affected by Various Organization Structures Including Pass-Through Entities and Nonpass-Through Entities in Terms of Taxation

Demonstrate the Ability to Predict Expected Levels of Net Profit Margin Based Upon the Type of Business Being Analyzed and Their Ability to Create Value by the Product or Services Being Provided

Demonstrate How to Convert an Accrual Basis Income Statement Into a Cash Basis Income Statement Which Is Essentially the Purpose of Cash Flow Analysis