I am trying to read corporate tax returns in order to determine real income.I searched from teh internet ,but i could not find any source clear and wide.I was wondering if anyone could help me by suggesting a book or by explaining some details.


Thanks

Tina

Tina:

This could turn into a very complicated response. In order to help, I would need to know:

Exactly whose income are you trying to figure out?

What do you mean by “real”?

What is the purpose of this exercise? Is it to qualify for a loan? What type of loan and for what purpose?

When you say corporate tax return, do you mean an 1120?

Is not that I don’t want to answer. It is just that the answers will help me formulate an appropriate response. By the way, I learned to analyze tax returns on the job and I don’t know of any book that you can use. Personally, credit analysts prefer to use accountant prepared financial statements instead of tax returns. They have more information.