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Calculating Cash Flow from Corporate Tax Returns

Jan 28 2:00 PM - Jan 28, 2021 3:30 PM
Jan 28, 2021 2:00 PM - 3:30 PM
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Deciphering corporate tax returns is a necessary skill for commercial lenders. However, the returns can be complicated, lengthy, and opaque. They certainly aren’t designed to provide the crucial data point lenders need most: cash flow. Join this webinar to learn how to pinpoint a corporate borrower’s annual cash flow quickly and accurately.

Learning Objectives

  • “Cash-flow” a C Corp tax return
  • Convert an accrual-basis tax return into a cash-basis cash flow
  • Determine whether gains on sales of investments or business property are recurring or one-time sales to be ignored
  • Establish how much owners are taking out of the business in salaries, dividends, and loans
  • Calculate the key business ratios and “global cash flow” from a corporate tax return

Decoding corporate tax returns (C Corp) is essential for lenders. However, tax returns are not designed to show what you are looking for: cash flow. The C Corp tax form, Form1120, is set up to report taxable incomes and allowable expenses of a company. Those, however, often don’t indicate cash inflows and outflows. In addition, tax returns will very likely report incomes and expenses on the accrual basis of accounting, where timing differences from cash basis can throw off your cash-flow calculation. With this webinar, you will learn how to identify a corporate borrower’s annual cash flow quickly and reliably. You will also be able to calculate the global cash flow of the owners and business combined.



Tim Harrington, CPA, TEAM Resources

Tim Harrington is President of TEAM Resources and has been a financial institution consultant for over 30 years. Tim has advised lenders on verifying income from tax returns since 1992, and consults with financial institutions nationwide on issues of strategy, profitability, and board governance in addition to analyzing tax returns. He speaks at nationwide conferences and has presented in Canada, Mexico, Puerto Rico, Jamaica, the Virgin Islands and all 50 states. Tim is the author of the popular software, Lenders Tax Analyzer. In addition, his book “Eisenhower on Enlightened Leadership” has been used by management teams nationwide to improve leadership skills. He did his undergraduate studies at Gonzaga University and graduate studies at the University of Washington.




Additional Info

Event Type

On-Demand Webinar

Topics Covered

  • On-Demand Webinars
  • Lending & Collections