No formal training in accounting? No problem! Designed for new commercial
lenders and credit analysts, this session will explain the essentials of the
accounting principles used to produce financial statements, how to calculate
key credit ratios, and more.
- Understand accounting principles used to create financial statements
- Comprehend the major accounts on the balance sheet and income statement
- Recognize how the income statement and balance sheet are related and provide a
foundation for understanding ratio and cash flow analysis
- Calculate key credit ratios when determining borrowers’ financial condition
- Understand the purpose and reasoning for performing a cash flow analysis utilizing
the modified uniform cash analysis method to compare the UCA method to the
This webinar is designed for new credit analysts and credit analysts and/or commercial
lenders (including branch managers) with no formal training in accounting and credit
It will begin by explaining accounting assumptions and the rules of debits and
credits used to prepare financial statements and tax returns. Then, the course will review
the Balance Sheet, Income Statement, Statement of Retained Earnings, and Statement of
Cash Flows by explaining the purposes of all statements and the meaning of common
accounts found on them. With the knowledge gained to this point, techniques to spread
financial statements will be covered to ensure the results will be reliable and basic credit,
ratio, and cash flow analysis will be demonstrated to determine a company’s liquidity,
leverage, operating performance, and cash flow generation capability. The focus will be
on commercial and industrial type borrowers.
Jeffery W. Johnson, MBA, Bankers Insight Group
Jeffery Johnson has been in financial services more than 40 years. He has been VP and senior lender for a large regional bank and SVP and commercial banking division manager for a community financial institution. Most of his career has been spent in credit administration, lending, business development, loan review, management, and training and development. Over the last 17 years, Jeffery has provided training for several banking associations and individual financial institutions nationwide.
Jeffery holds a bachelor’s in accounting from Morehouse College in Atlanta, an MBA in finance from John Carroll University in Cleveland, a Diploma of Graduation from the Prochnow School of Banking at the University of Wisconsin-Madison, and a Graduate Certificate in Bank Management from the First American Management Institute at the University of Pennsylvania’s Wharton School of Business.