Financial Statement Analysis: Analyzing the financial statements and forecasting is critical. Ratio analysis and interpretation is often done by analysts. It is critical that the project owner/sponsor understand how lenders and investors analyze these statements.

Financial Statement Overview: The emperor has no clothes! Perhaps the case with Hans Christian Anderson but not with real estate. The “clothing” for real estate are the financial statements which provide a consistent approach to analysis. No asset can be valued without an understanding of the basic financial statements and their differences: (1) Balance Sheet, (2) Income Statement, (3) Statement of Cash Flow, and (4) Statement of Retained Earnings.