6b: Interim Reports E-mail Memo - Essay Example

Jan Waters, Controller Financial Advisor January 17, 2008 Interim Reports The company is required to prepare four interim reports every three months. The reports that must be prepared and made public are the income statement, the balance sheet, the statement of retained earnings, and the statement of cash flow. The integration of online course into Calliope’s revenue generation activities will immediately affect the quarterly results at the end of the quarter in which it was implemented. In comparison with the same quarter last fiscal year the revenues, expenses, net income should all increase.

The offering of online courses creates a demand for greater supply of college professors to give these online courses. Labor cost is an expense that will raise the total expenses in the income statement. The equipment account, total assets, cash balance should all rise in the balance sheet, while the cash total of the company should be higher as well. The change towards offering online courses is a strategic choice that the University implemented to raise enrollment of students and revenues. It is an important move that may not be disclosed in the financial statements as a note, but is included in the annual report which may cross reference the financial statements to provide income stream projections.