July 16, 2011
Summary of Analysis
Candela Corporation is a 34-year old company leading and specializing in the development and commercializing of advanced aesthetic laser systems for doctors and personal care experts offering treatments in an array of medical and cosmetic conditions, such as, Vascular lesion of rosacea, facial spider veins, leg veins, scars, stretch marks, warts, port wine stains and hemangiomas, hair removal, removal of benign pigmented lesions such as age spots, freckles and tattoos, skin rejuvenation and wrinkles, acne and acne scars, psoriasis, and other skin treatments. Candela Corp’s dedication to developing the safest, affordable, and most effective laser systems and applications has afforded Candela Corp the opportunity to corner their respective markets in the industry. Since 1980, Candela Corp has developed laser technology and medical applications and sold approximately 7,000 units to over 60 different countries. “Last year alone, Americans spent an estimated $8.3 billion on cosmetics procedures (Fraser & Ormiston, 2007). Candela Corporation and Subsidiaries has supplied their consolidated statements of cash flows for the periods ending July 3, 2004, June 28, 2003, and June 29, 2002. Using this information, we will conduct a two (2) part study, whereas, in part one (1), we will prepare a summary analysis and analyze the cash flows, and part two (2) explains information gained not found directly on the balance sheets and income statements. Part 1
In the year ending 2004, we notice the operating activities of $1,132 in the statement of cash flows are very low compared to the net income of $8,119. This may be due to the increases and decreases of the following operating accounts. The amounts of $7,663 in accounts receivable and an increase of $ 2,550 in other current assets, along with the decrease of $1,312 in the income tax payable account. Presented in the...