Acc/250

In: Business and Management

Submitted By lorrie77
Words 844
Pages 4
| Candela Corporation | Statement Of Cash Flows | | | | Acc/230

In review of Candela Corporation and Susidiaries Consolidated Statements of Cash Flow for the years of 2002 through 2004. In 2002 with the accruals method the company had a major loss in net income of $2,154 in thousands. In the analysis the adjustments in working capital showed a vulgar debit in cash that was caused by spending of cash in the operating activities, the working capital also stated that from inventory, receivables, and that the payable income tax was upturned in large sums. In command to grasp the reality of cash flows and the non-cash cost had to be adjusted back in period. In adding there loss from discontinued operations and imputed on the interest stock of warrants; the deferred taxes and their currency foreign exchange had different rated and were the most important deductions that stayed in admiration. In reviewing the activities, the purchase of fixed rates are the source of the outflow generates of the investing activities. The financial activities, has overall the complete spending that was tested and maintained the issue of shares and the debt they owe in borrowing instead of their prior obligations, Candela Corporation had to purchase some of their stock back and some of their debt they had they had to repay it. This maintained a different view in the cash outflow in financing activities. Subsequently the ravages of investing, financing, and the flow of operation activities remained damaging; this rooted the outcome flow of net cash from the company. Meanwhile the company showed foregoing cash balances, that was capable to tolerate them but with brutal disadvantages in its cash balances.

Candela Corporation in 2003 had an amazing net profit of $6,814,000. In addition with the item that needs adjusted is the non-cash items, among the important deduction…...

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