What is the significance of this event to the success of the company?

  • 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.
  1. Compnet has established a cash reserve. Why might a company like Compnet use this strategy?
  2. The company had a charge for the impairment of goodwill. Why did this take place?
  3. 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?
  4. 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?

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