Finances of Corinthian College Inc - Essay Example

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 investor would be looking for how the stocks are evaluated, 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 analysts and financial advisors examine this section to decide whether or not to track and recommend the corporation for investment. A vital portion of 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.