Corinthian College Annual Report for 2005 Essay Example | Topics and Well Written Essays - 750 words

Corinthian College Annual Report for 2005 - Essay Example The annual report is formatted to include an informational portion that need not follow any set format. The actual information required in the report to the SEC is found in the 'consolidated statements' portion of the annual report and contains information to satisfy 10K reporting requirements. The actual report is done by an independent accounting firm hired by the corporation. This firm performs the analysis and reporting functions required by the SEC. Often, the corporation submits an agreement, or disagreements, addendum to the report to explain anything out of the ordinary to the SEC. As stated earlier, the 'notes' section explains the 'consolidated' reports section of the annual report. It is the longest portion of the report and, in some ways, is the most important part of the report. Investors examine the annual report to determine whether or not the corporation is worth investing in. If this is a publicly listed corporation then investors interested in the corporation can purchase stocks and receive dividends from the corporation. The most important factor the investor would be interested in would be the profit/loss section of the report and the 'notes' section that explains that portion. In the annual report for Corinthian College, Inc. the profit/loss section of the report (the balance sheets) is located on page 57 of the 10K report. Its corresponding notes section is located on page 61. Investors would be looking intently at the notes section that explains the assets and liabilities of the corporation. These are explained in the notes section and are labeled 'taxes', 'comprehensive income', 'stock based compensation' and, 'income per share' section of the report. To determine whether or not the corporation is a good investment investors would be looking for how the stocks are valuated, whether the corporation is profitable, and the growth rate of the corporation. The 'balance sheet' of the corporation (the numbers) follows with a more detailed report than is found in the 10K report. The balance sheet for the previous year is provided for comparison. Investors will read this section of the report to help them decide whether or not to invest. Also, investment analys ts and financial advisors examine this section to decide whether or not to track and recommend the corporation for investment. A vital portion to the 'notes' section is the acquisitions page. This report lists Wyo-Tech Acquisition Corp. ("Wyo-Tech"), Learning Tree University, Inc. ("LTU", Career Choices, Inc. ("Career Choices"), East Coast Aero Tech, LLC ("ECAT")., and CDI Education Corporation ("CDI"), A.M.I., Inc. as acquisitions. All these acquisitions may be a liability for the corporation initially but may increase profits in the future. The investor would be interested to know what the future plans are for these acquisitions. Fair market value for the above acquisitions is listed on page 75 and provides a snapshot of how much the acquisitions added to the corporation. The corporation also assumed leases that the acquisitions had in place. One of the most important sections that corporation outsiders would be interested in is Note 7-Preferred Stock and Common Stockholders' Equity section. It explains such details as how much preferred