Intermediate Financial Analysis,
Interpretation and Credit Risk Assessment

A comprehensive course for…
Credit Analysts, Potential CBF Applicants and CCE Exam candidates

About the Program
This intermediate financial analysis program has been designed for credit analysts and managers seeking comprehensive understanding of what's behind the numbers in financial reports. It is designed to improve the credit professional's ability to analyze and interpret financial statements leading to quality credit risk assessment. The program gives equal weight to the process of financial reporting, the analysis and interpretation of financial statements and the steps required to write a quality credit line recommendation.

Program Instructor
George A. Schnupp, CCE, the 2008 National Credit Executive of the Year, is the U.S. Director of Credit at Anixter Inc. With over 25 years of experience in the credit profession, he has implemented various PC-based credit processes, eliminating numerous routine repetitive tasks performed by credit personnel. Mr. Schnupp is an instructor for NACM Midwest (Chicago Institute of Credit), William Rainey Harper College and NACM National. He has taught Principles of Business Credit, Financial Accounting, Financial Statement Analysis I, Financial Statements: Interpretation and Credit Risk Assessment and Essentials of Finance. He is an alumnus of the NACM Graduate School of Credit & Financial Management and author of the course material for the CCE Prep Course. He was also a core contributor to the Principles of Business Credit textbook used in the Credit Administration Program (CAP). Mr. Schnupp has served on numerous national committees, including the Accreditation and Education Committees. He continues to serve on the national CAP Instructors Committee and is the Chairman of the Advanced Credit Administration Program Instructors Committee. In addition to being honored as the 2008 National Credit Executive of the Year, he was named the NACM & Robert Half/Accountemps Instructor of the Year in 2000 and the NACM Midwest Credit Executive of the Year.

Program Overview
This program satisfies the intermediate course requirement for the Credit Business Fellow (CBF) designation. It is also an excellent preparatory class for the Certified Credit Executive (CCE) designation exam. Using the textbook, Financial Reporting & Analysis, by Charles H. Gibson and a supplemental booklet, Essentials of Finance, by Dr. George W. Gallinger and Jerry B. Poe, participants will receive in depth exposure to:

• Investments: Short and Long-term
• Receivables
• Inventories and Valuation Methods
• Fixed Assets and Depreciation
• Financing: Debt and Equity
• Financial Reporting for Leases
• Income Tax Reporting
• Pensions and Postretirement Benefits
• Ratio Analysis
• Cash Flow Analysis
• Credit Risk Assessment

Program Prerequisites
It is strongly recommended that participants have successfully completed a basic financial accounting course. In order to participate actively and gain the most from this course, students will need to join this class with a firm understanding of accounting concepts. Also, although it is recommended that Financial Statement Analysis-I be completed prior to this course, it is not a requirement.

Program Schedule

Day One – Sunday
5:00 – 6:30pm
Welcome Dinner

Day Two – Monday
7:30 – 8:00am
Continental Breakfast

8:00 – 10:30am
Chapter 1: Fundamental Concepts and Introduction to Financial Reporting
You will learn the basic principles of accounting on which financial reports are based. A review of the evolution of GAAP and the traditional assumptions of the accounting model helps the participant understand the statements and thus analyze them better.

10:30 - 10:45am
Morning Break

10:45am - Noon
Chapter 2: Introduction to Financial Statements and Other Financial Reporting Topics
You will learn the forms of business entities and be introduced to financial statements. This chapter includes other financial reporting topics that contribute to the understanding of financial reporting, such as the auditor's report, management's responsibility for financial statements, and the SEC's integrated disclosure system.

Noon - 1:00pm
Lunch

1:00 - 3:00pm
Chapter 4: Income Statement (Margins)
You will learn all about the operating statement, including special income statement items. Other topics included are the reconciliation of retained earnings, dividends and stock splits.

3:00 – 3:15pm
Afternoon Break

3:15 - 5:00pm
Chapter 3: Balance Sheet (Investments = Financing)
You will learn all about the balance sheet and be introduced to consolidated statements and problems in balance sheet presentation. Special emphasis will be given to the investment choices in various assets being carried on the balance sheet.

5:30pm
Dinner at a Local Restaurant
All dinners are held at restaurants. A variety of dinner choices are always available.

Day Three – Tuesday
7:30 – 8:00am
Continental Breakfast

8:00 – 10:30am
Chapter 10: Statement of Cash Flows
You will learn the major sources and uses of cash reported in the operating, investing and financing sections of the statement of cash flows. You will also learn why accrual net income and operating cash flows differ and the factors that explain this difference. The difference between the direct and indirect method of determining cash flows from operations will be discussed.

10:30 - 10:45am
Morning Break

10:45am - Noon
Chapter 10: Statement of Cash Flows (continued)
You will learn how to prepare a statement of cash flows from comparative balance sheet data, an income statement and other financial information. Special emphasis will be given to the operating activities related to working capital.

Noon - 1:00pm
Lunch

1:00 - 3:00 pm
Chapter 6: Liquidity of Short-Term Assets; Related Debt-Paying Ability
You will learn about the procedures necessary for analyzing short-term assets and the short-term debt-paying ability of an entity. There will be a detailed discussion of four very important current investments: cash, marketable securities, accounts receivable and inventory.

3:00 – 3:15pm
Afternoon Break

3:15 - 5:00pm
Chapters 16 & 17: Essentials of Finance
You will learn how the short-term business investment in a firm represents resources committed to cash, accounts receivable, and inventories. You will also learn the relationship between the level of investment in short-term assets and the financing of those assets. The emphasis will be on short-term investment and financing from a flow of funds approach.

5:30pm
Dinner at a Local Restaurant

Day Four – Wednesday
7:30 - 8:00am
Continental Breakfast

8:00 – 10:30am
Chapter 7: Long-Term Debt Paying Ability
You will learn about financial instruments with off-balance sheet risk, financial instruments with concentrations of credit risk, and disclosures about fair value of financial instruments.

10:30 - 10:45am
Morning Break

10:45am – Noon
Chapters 6 & 7: Essentials of Finance
You will learn about the major types of financial intermediaries and how they function in the financial market. We will discuss the two kinds of securities: debt and equity commonly called bonds and stocks, respectively. The emphasis will be on the underlying relationship that exists when raising funds for expenditures.

Noon - 1:00pm
Lunch

1:00 – 3:00pm
Chapter 8: Analysis of Profitability
You will learn how important the net profit margin is as it relates to return on equity performance. You will gain an understanding how vital profit margins are to stockholders, creditors and management.

3:00 – 3:15pm
Afternoon Break

3:15 – 5:00pm
Chapter 5: Basics of Analysis
You will learn how competitive forces and a company's business strategy influence its operating profitability. You will also learn how Return on Assets (ROA) can be used to analyze a company's operating profitability and what insights are gained from separating ROA into its profit margin and asset turnover components. Return on Equity (ROE) will also be studied to determine the impact of financial leverage on a company's operating profitability.

5:30pm
Dinner at a Local Restaurant

Day Five – Thursday
7:30 – 8:00am
Continental Breakfast

8:00 - 10:00am
Case #1: Speedy Auto Supply Co.
Case #2: Hit Hard Football Equipment Sales Inc.

10:00 – 10:15am
Morning Break

10:15am – Noon
Case #3: NPK Global Inc.
Case #4: United Airlines Inc.

Noon - 1:00pm
Lunch

1:00 - 5:00pm
Comprehensive Review and Final Exam, covering the material presented in Chapters 5, 7, 8 from the Financial Statement Analysis Book, Chapters 6 & 7 from the Essentials of Finance supplement and the return on equity methodology.

In order to give you sufficient time to take the final exam, we strongly recommend that your return flight be scheduled to depart after 5:00pm on the final day of the program or the following morning. Please do not plan on leaving the national office for airport before 5:00pm.