Acc/230 Week 6 Assignment

Week 6 Assignment cd Corporation discipline Rebecca Mouser ACC/230 Financial coverage Peeking Under the Financial Hood November 4, 2012 Instructor Nathan McDaniel Week 6 Assignment wax light Corporation Case Assignment certificate of deposit Corporation Case Resource Ch. 4 of Understanding Financial Statements * Compose a 500- to 750-word paper responding to questions 1 and 2 of the Candela Corporation Case on p. 146 (Ch. 4). * Format your paper agree to APA standards. * Post your paper as an attachment. 1.Using the Consolidated Statements of Cash Flows, prepare a summary analysis for the age ended July 3, cc4, June 28, 2003, and June 29, 2002. Analyze the funds flows for Candela Corporation, Inc. for all three years. 2. Explain what information you gain from the rumor of cash flows that cannot be found directly from the balance sheet or income line of reasoning. Candela Corporation is a pioneer in the development and commercialization of advanced aesthetic laser systems tha t allow physicians and personal headache practitioners to treat a wide variety of cosmetic and medical conditions (Fraser & Ormiston, 2007, pp. 46-147). After reviewing the corporations tilt of cash flows for the years 2002, 2003, and 2004, it is clear that the partnership has taken on many changes financially. In 2002, Candela Corporation had a weak start with several losses compared to the years 2003, and 2004. In 2002, Candela had a straighten out loss of $2,154 (thousands) compared to a engagement gain in 2003 and 2004. Candela Corporation had a importantly higher amount of loss in its last cash used in operating activities of $7,071 (thousands) compared to its net loss of $2,154 (thousands), a difference of $4,917.Candela Corporation also had a net loss in its investiture activities of $1,058 (thousands), and a net loss in its financing activities of $5,141 (thousands). Candela also had a loss of $68 (thousands) on its income assesses for the year. In 2002, the compa ny took a loss in the following operating areas according to their report of cash flows. Provision for deferred taxes $115 (thousands), tax benefit from exercised stock options $6 (thousands), effect of exchange regularise changes on foreign currency denominated assets and liabilities of $305 (thousands).Account receivable $3,525 (thousands), notes receivable $54 (thousands), inventories $1,661 (thousands), and accounts account payable $3,069 (thousands) and income tax payable $784 (thousands). benefit losses in investing and financing areas include purchase of property, plant, and equipment of $1,058 (thousands), repurchases of treasury stock of $5,215 (thousands), and principle payments of long-term debt of $370 (thousands). In 2003, Candela Corporation had a net profit at the yearend of $6,814 (thousands) with a net cash used in operating activities of $11,655 (thousands) a significant difference from 2002.Candela Corporation still had a net loss in its investing activities of $1,227 (thousands) while they had a net profit in its financing activities of $176 (thousands). opposite net losses the company incurred in its operating, investing, and financing activities sections were provision for bad debts $13 (thousands), provision for deferred taxes $682 (thousands), and tax benefit from exercised stock options of $505 (thousands). Other areas are restricted cash $57 (thousands), account receivable $2,417 (thousands), accounts payable $1,409 (thousands).Accrued warranty costs of $921 (thousands), purchase of property, plant, and equipment $1,227 (thousands), net borrowings (repayments) on line of credit $1,114 (thousands), and principle payments of long-term debt of $3,330 (thousands). Candela Corporation seems to be most successful in 2004 according to its narration of cash flows. In 2004, Candela Corporation had a net income of $8,119 (thousands) and $1,132 used in net operating activities. Even though the company still had several losses in 2004 they were still able to profit from the last two years.Other net losses the company incurred in its operating, investing, and financing activities sections were tax benefit from exercised stock options of $1,223 (thousands), restricted cash $200 (thousands), accounts receivable $7,663 (thousands) and inventories of $2,134 (thousands). Other current assets of $2,550 (thousands), other assets $236 (thousands), accounts payable $91 (thousands), income tax payable $1,312 (thousands), and purchase of property, plant, and equipment of $685 (thousands).The income statement and balance sheet provides an adequate amount of information, but the statement of cash flows provides a clearer picture of what a company is doing and how well they are doing. The income statement and balance sheet provides information about the accounts receivable and the accounts payable as well as depreciation the statement of cash flows also provides this information. A companys financial statements consist of the balan ce sheet, income statement and cash flow statement. The balance sheet summarizes the assets, liabilities and shareholders equity of the company.The income statement shows the sales-related activity over a period, which is usually a quarter of a year. The cash flow statement shows the cash inflows and outflows during a period. Financial information is important in assessing a companys profitability, signal detection problem areas and making investment decisions (Basu, 1999-2012). References Basu, C. (1999-2012). The importance of Income Statement and Cash Flows. Retrieved from eHow http//www. ehow. com/info_8274659_importance-income-statement-cash-flows. html Fraser, L. M. , & Ormiston, A. (2007). Case 4. 2 CandelaCorporation. Prentice Hall.