1. At the beginning of 2009, CanGo purchased the online gaming company. This purchase was for cash, paid for through the proceeds of the IPO and results in goodwill.
2. 90% of the online book sales comes from JIT, the other 10% through the inventory which CanGo possesses. 100% of the CD/DVD/MP3 come through CanGo inventory. The result is that 80% of ALL sales is JIT and 20% is inventory.
3. There is one warehouse for shipping of books and one plant for manufacturing.
4. There are three divisions: a CD/DVD/MP3 division, an online gaming division and a books division. All manufacturing takes place in the CD/DVD/MP3 division.
5. The IPO took place at the beginning of 2009.
6. The CD/DVDs were customized beginning in 2008. The MP3 players were built beginning in the start of 2009.
7. The online gaming company was purchased for $30,000,000 and both Elizabeth and Andrew initiated the process.
8. The company began in 2006, has a VC infusion in 2007 and 2008. It showed a profit in 2008 and 2009. Its only profitable division is the online book sales division.
9. It has some type of international operations, hence the need for a “translation gain or loss” in owner’s equity.
It has an extraordinary loss from fire and a sale of a segment of its business in 2009