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Military Leave and Earning Statement – is it Cashflow?

Military Leave and Earning Statement - You can use it!

Jim's question:

Are you familiar with how to read a Military Leave and Earning Statement (LES)? We're trying to assess a borrower who appears to receive a base housing allowance. We're looking at a year-end LES and when...

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When can a business book goodwill?

When can a business book goodwill?

Mark asks:

On the balance sheet of a Media Production Company, total assets are reported at $4,048,395 and consist primarily of goodwill of $3,312,324. When asked, the management team of the company stated “goodwill was established at the time when investor dollars...

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What if you need training for advanced lenders and analysts?

In the last month, we have fielded two calls from people who assumed our training was too basic. Perhaps they attended an industry webinar or viewed one of our most basic online modules.

This is how we work with clients to customize training for type of lending and for the complexity of your borrowers.

Three ways we...

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You aren’t biased, are you?

5 Common Judgment Biases and How to Avoid Them

Loan Bias

In an insightful article in the February 2015 Issue of the Journal of Accountancy, Rebecca Fay and Norma Montague touched on unintentional biases that can lead auditors astray. As I read it, I realized...

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Do we add back M-1 Depreciation?

Catherine’s question:

What is the depreciation figure on the 1065 Schedule M-1, Line 4a for? I don’t see that we ever look at this figure to “add” back. Has this already been calculated into the depreciation figure on Page 1, Line 16?

Linda says:

Schedule M-1 is on the returns...

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How to Calculate Global DCR

Christine’s question:

When calculating global debt coverage ratio, what is the best way to combine business and guarantor cashflow?

Linda says:

As always with algebra, there are several ways to utilize guarantor and business cashflow in a debt coverage ratio and each gives a different result. Here are the two...

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What’s the significance of a final tax return?

Kimberly’s question:

One of my guarantors was in a now-ended partnership. The final tax return shows a loss, primarily made up of bad debts. What is the significance of this loss, given that the company no longer exists? Should I count it against my borrower?

Previous returns don't show...

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5 Steps to an Effective Loan Write-up

Five Steps to an Effective Loan Write-up

Analysis is useless if it does not include analysis! Okay, that is pretty cryptic. Keep reading, though, and all will become clear. In preparing for a recent training on Farm Balance Sheet Analysis for an AgLending client, the Chief Credit Officer asked for a strong segment on the write-up....

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