'Acc/230 Week 6 Assignment\r'

' calendar week 6 appointment: taper potentiometer drive Rebecca Mouser ACC/230 Financial reporting: Peeking Under the Financial Hood November 4, 2012 Instructor Nathan McDaniel Week 6 Assignment: Candela association Case Assignment: Candela Corporation Case imaging: 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 check to APA standards. * Post your paper as an attachment. 1.Using the Consolidated Statements of property Flows, prep be a summary analysis for the years ended July 3, 2004, June 28, 2003, and June 29, 2002. Analyze the funds fuses for Candela Corporation, Inc. for every(prenominal) three years. 2. Explain what education you gain from the argumentation of cash flows that cannot be found directly from the residue sheet or income financial statement. â€Å"Candela Corporation is a pioneer in the development and commercializa tion of move aesthetic laser systems that allow physicians and personal palm practitioners to treat a wide variety of nonfunctional and medical conditions” (Fraser & angstrom unit;amp; Ormiston, 2007, pp. 46-147). After reviewing the locoweed’s statement of cash flows for the years 2002, 2003, and 2004, it is authorise that the participation has taken on many changes financially. In 2002, Candela Corporation had a weak draw with several damagees compared to the years 2003, and 2004. In 2002, Candela had a take in loss of $2,154 (thousands) compared to a electronic crystalizework gain in 2003 and 2004. Candela Corporation had a significantly higher come up of loss in its net cash utilize in in operation(p) 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 funding activities of $5,141 (thousan ds). Candela also had a loss of $68 (thousands) on its income measurees for the year. In 2002, the company took a loss in the following operating areas check to their statement of cash flows. Provision for deferred taxes $115 (thousands), tax benefit from exercised stock options $6 (thousands), effect of commutation rate changes on foreign currency denominated assets and liabilities of $305 (thousands).Account due $3,525 (thousands), notes receivable $54 (thousands), inventories $1,661 (thousands), and accounts collectible $3,069 (thousands) and income tax payable $784 (thousands). Net losses in investing and financial backing areas include corrupt of property, plant, and equipment of $1,058 (thousands), repurchases of treasury stock of $5,215 (thousands), and prescript payments of semipermanent 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 si gnificant difference from 2002.Candela Corporation still had a net loss in its investing activities of $1,227 (thousands) patch they had a net profit in its financing activities of $176 (thousands). Other net losses the company incurred in its operating, investing, and financing activities sections were formulation 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 thriving in 2004 according to its statement of cash flows. In 2004, Candela Corporation had a net income of $8,119 (thousands) and $1,1 32 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), opposite 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 depicting 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 disparagement; the statement of cash flows also provides this information. â€Å"A company’s financial statements consist of the balance sheet, income statement and cash flow statement. The balance sheet summarizes the assets, liabilities and shareholders’ rightfulness of the company.The income statement shows the sales-related activity over a period, which is normally 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 company’s profitability, detecting problem areas and making investment decisions” (Basu, 1999-2012). References Basu, C. (1999-2012). The enormousness 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.\r\n'