Analysis of tax returns and financial statements can be daunting. Lenders spend long hours analyzing them in an attempt to arriving at a near-accurate cash flow position of a borrower. A tax return contains numerous schedules and statements, all of which have to be combed through. An inexperienced credit analyst can easily understate a borrower’s cash flow and in the process deny the loan and vice versa. This is an art that must not be taken lightly. The following is one of a series of my five lending tips for lenders and useful insights for borrowers as well.