Acc/230 Week 6 Assignment

Week 6 assigning Candela mickle Case Rebecca Mouser ACC/230 pecuniary Reporting Peeking Under the Financial Hood November 4, 2012 instructor Nathan McDaniel Week 6 Assignment Candela pot Case Assignment Candela Corporation Case Resource Ch. 4 of Understanding Financial Statements * Compose a 500- to 750-word motif responding to questions 1 and 2 of the Candela Corporation Case on p. 146 (Ch. 4). * Format your paper according to APA standards. * Post your paper as an attachment. 1.Using the Consolidated Statements of Cash Flows, prepare a summary abstract for the years ended July 3, 2004, June 28, 2003, and June 29, 2002. Analyze the change descends for Candela Corporation, Inc. for all tierce years. 2. Explain what information you gain from the tilt of coin flows that cannot be set directly from the brace sheet or income asseveration. Candela Corporation is a pioneer in the development and commercialization of advanced aesthetic laser systems that allow physicians and personal care practitioners to treat a wide physique of cosmetic and medical conditions (Fraser & Ormiston, 2007, pp. 46-147). After reviewing the corporations statement of cash flows for the years 2002, 2003, and 2004, it is clear that the society has taken on umpteen changes financially. In 2002, Candela Corporation had a weak start with some(prenominal) releasees compared to the years 2003, and 2004. In 2002, Candela had a gelt loss of $2,154 (thousands) compared to a crystalise gain in 2003 and 2004. Candela Corporation had a significantly higher amount of loss in its force out cash used in operate activities of $7,071 (thousands) compared to its net loss of $2,154 (thousands), a disagreement of $4,917.Candela Corporation similarly had a net loss in its place 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 taxes for the year. In 2002, the company took a los s in the following operating areas according to their statement of cash flows. Provision for deferred taxes $115 (thousands), tax gain from exercised linage options $6 (thousands), erect of exchange rate 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 studys payable $3,069 (thousands) and income tax payable $784 (thousands). Net losings 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 normal payments of long-term debt of $370 (thousands). In 2003, Candela Corporation had a net addition 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 make in its financing activities of $176 (thousands). Other 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 statement 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 la st 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), some 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 isotropy 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 wellhead 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 balance sheet, income statemen t 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, detecting problem areas and making investment decisions (Basu, 1999-2012). References Basu, C. (1999-2012). The magnificence 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. assimilator Hall.