Analyze the financial statements of compnet international

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Reference no: EM131146234

Analyzing a Financial Statement

Conducting a financial statement review is like a physician conducting a routine physical examination. By analyzing an organization's financial statement, you can identify the strengths and weaknesses of the organization or diagnose problems.

Review the following company summary:

Compnet International is a US organization that manufactures automobile parts and various technical components used in computers and computer devices.

Throughout this course, you will analyze the financial statements of Compnet International.

In this assignment, you will begin your analysis of the financial statements of Compnet International. You will discuss details of Compnet's financial position with your classmates and formulate an independent memo that summarizes a strategy for the future growth of Compnet.

Tasks:

Review the Compnet balance sheet income statement and company summary. Use the information in these documents to analyze the financial position of Compnet.

Respond to these questions using appropriate financial terms.

Compnet has established a cash reserve. Why might a company like Compnet use this strategy?

The company had a charge for the impairment of goodwill. Why did this take place?

The notes in the financial statement indicate that a $3-million-long-term-debt payment is due in three years. Why is this information important to an investor?

In 2013, accounts receivable and the revenue decreased. What is the significance of this event to the success of the company? How did Compnet adjust its operations to address the effects of the recession?

Reference no: EM131146234

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