Acc/230 Week 6 Assignment

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Week 6 Assignment: Candela Corporation Case
Rebecca Mouser
ACC/230 Financial Reporting: Peeking Under the Financial Hood November 4, 2012
Instructor Nathan McDaniel

Week 6 Assignment: Candela Corporation Case
 Assignment: Candela 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 according to APA standards.
* Post your paper as an attachment.
1. Using the Consolidated Statements of Cash Flows, prepare a summary analysis for the years ended July 3, 2004, June 28, 2003, and June 29, 2002. Analyze the cash flows for Candela Corporation, Inc. for all three years. 2. Explain what information you gain from the statement of cash flows that cannot be found directly from the balance sheet or income statement. “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 variety of cosmetic and medical conditions” (Fraser & Ormiston, 2007, pp. 146-147). After reviewing the corporation’s statement of cash flows for the years 2002, 2003, and 2004, it is clear that the company 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 net loss of $2,154 (thousands) compared to a net gain in 2003 and 2004. Candela Corporation had a significantly higher amount of loss in its net 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 investing 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 loss in the...
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