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. The success CanGo’s business will depend on itsability to continue to be profitable over a long term, while being able to pay all of its financial obligations and clearing above average returns for its shareholders. The most valuable way to measure the performance of CanGo’s critical areas such as profitability, solvency, the amount of debt exposure and the efficiency in resource utilization, is by performing a financial analysis. Within this analysis a number of set ratios can provide a snapshot of the company’s performance and future prospects. Financial analysis is a useful technique that forms a basis for taking key decisions about company operations (Russel, P. R., 2004).