Financial Statement & Cash Flow Analysis
Want to learn how to analyze business financial statements and tax returns in a compact, intense, case-based two-day session? Want to move beyond ratio analysis and into the operating, investing and financing cash flows of a business and how they impact loan repayment? This live workshop is your answer, whether you are new to lending and financial analysis, or even if you just need a refresher. This course is also highly recommended for bankers planning to attend a formal lending school. (Bring your calculator and pencil!
When
Where
TBA Headquarters
203 W 10th Street
Austin, Texas 78701
Agenda
Introduction to Financial Statements
• Identify the basic structure and purposes of financial statements and the three methods of accounting
How Business Financial Statements and Tax Returns are Constructed (Accounting Refresher)
• Compare and contrast cash and accrual accounting methods
• Construct from a case study a conventional balance sheet, income statement and statement of cash flows on both the cash and accrual basis
• Construct the related business tax return balance sheet, income statement, Schedule M-1 on the cash basis
• Tax return balance sheet, income statement, Schedule M-1 and Schedule M-2 on the cash basis
• Describe the key differences in all three presentations of the financial performance of the example business (cash vs. accrual vs. cash/income tax basis)
• Identify the role and function of the Schedule K-1 that passes through income/expense and actual cash flow from the business to its owners
More on Accrual Accounting Used by Larger Businesses
• Identify key standards, limitations and alternatives or generally accepted accounting principles (GAAP)
• Appendix (for reference) with examples of cover letters and accountant procedures for various levels of accountant-prepared financial statements (including compilations, reviews and audits)
Ratio Analysis
•Describe key issues in classifying and spreading the data
• Identify key components of a balance sheet and calculate liquidity and leverage ratios for a business
• Identify key components of an income statement and calculate profitability and traditional cash flow measures for a business
• Calculate efficiency and debt coverage ratios for the case study business
• Discuss all of the various ratios, in terms of trends and indicators of risk, as well as summarizing your findings into your written credit analysis
• Appendix (for reference) on the use of industry and comparative data within financial analysis
Why You Need More Than Traditional Ratios and “Cash Flow” as Net Income + Depreciation + Interest Expense
• Describe origin from the Statement of Financial Accounting Standards (SFAS) 95 of thethe resulting Statement of Cash Flows (SCF), plus development of the Uniform Credit Analysis (UCA) model by bankers
• Explain how commercial real estate (CRE) cash flow is different due to typical usage of single-asset holding entities with limited balance sheet cash flow implications (except for capitalized expenditures and owner distributions)
• Identify the cash flow impact of changes in sales growth along with working capital efficiency (accounts receivable and inventory turnover) using our business case study from Day 1
• Describe the sources and uses of cash for both SCF and UCA, plus the three main categories of cash flow, and the indirect and direct methods for compiling a SCF
Building, Understanding and Using Cash Flow Media
• Construct an accountant-based, indirect format SCF from our Day 1 business case study and compare to the direct format SCF operating section (as a bridge to the UCA model)
• Identify the overall cash flow components of operating and investing cash flow, and how they directly affect the financing steps taken by a business
• Compare the formats of SCF and UCA, including key subtotals between a SCF and UCA (from case study)
• Identify the three basic cash flow questions for which the UCA model provides answers
• Identify four basic cash flow relationships shown by cash flow models, including how to use this information to improve loan structures and get more opportunities
• Compare the various SCF and UCA analytical conclusions with earlier conclusions from traditional ratio analysis on Day 1
Program: 9:00 AM – 4:00 PM
Lunch: Noon – 1:00 PM
Credit analysts, community bankers, small business lenders, commercial lenders, branch managers that lend to business owners, private bankers, special assets officers, loan review specialists and others involved in business and commercial lending.
First Registrant: $875
Additional Registrant: $775
All Non-Members: $1,725
Register online or complete the attached form and submit via email. The fee includes access to the virtual seminar, program materials and session recordings.
IMPORTANT: Registration is per person. All attendees must be registered to ensure access to the program, materials, recorded content and to be eligible to receive CE credit.
Cancellation/substitution requests must be made in writing. Email requests to education@texasbankers.com. Full registration fees will be refunded if written notice is received no later than January 13, 2026. Substitutions are permitted without penalty.
Nearby Hotels:
2026 Historic Driskill Hotel
Discount: $229 or 15% off best available rate when published rate is below $229
Available to all staff, clients, contractors and retires. No Identification required
When booking online, Select Corporate or Group Code in the booking tool and enter 39833
The link below automatically inputs the company code into the booking tool so you can simply choose the “book” button when on the Hotel webpage.
Book Online Here
The Stephen F. Austin Royal Sonesta
📌 Rate Code: BTR
📌 Booking Link: Booking Link – BTR
Omni Austin Hotel Downtown
📌 Rate Code: 45381685991
📌 Booking Link: Click HERE
Texas State Board of Public Accountancy: 14 CPE credit hours. There are no educational prerequisites.
Presenter
Richard Hamm
Richard Hamm has been training bankers for more than 30 years, including both creating and teaching courses for the American Bankers Association (ABA) and the Risk Management Association (RMA), plus regional banking schools (Graduate School of Banking – Wisconsin, Graduate School of Banking at Colorado, Southwestern Graduate School of Banking and Barret School of Banking – Memphis), numerous state banking and community banking associations and individual banks.