Candela

Candela Corporation is a company that develops and advances aesthetic laser systems that allows physicans and practitioners to help treat a vast variety of cosmetic and medical conditions. Candela Corporation’s Statement of Cash Flows for the years 2002, 2003 and 2004 will see if in fact there are financial fit to continue into this market. There are three parts to a Statement of Cash Flows that will be used; operating activities, investing activities and financial activities.

Looking at the operating activities for Candela Corporation, first thing that is noticeable is the considerable net loss suffered in 2002, roughly over 2.1 million. The overall bottom line for net cash from operating activities that year was also at a loss. Ultimately in 2003, Candela Corporation posted a significant increase in net income by just under 9 million. This helped contribute the bottom line for net cash from operating activities that year to 11.6 million that year. In 2004, Candela Corporation continued to post a net increase of 8.1 million, however that years bottom line for net cash from operating activities were only 1.3 million. In between the net income/loss and the bottom line for net cash from operating activities, we see a change in several accounts. In 2004, there were 2.09 million contributed to positive net cash in discontinued operations. There is an increase in accounts receivable and inventory indicating that Candela Corporation is allowing more debt to collect with its clients. There is also a significant decrease in accounts payable, indicating that Candela Corporation is paying off its own debts from 3.06 million in 2002 to 91 million in 2004.

Next thing to look at is the cash flows from investing activities. For Candela Corporation, the only account here is purchase of property, plant and equipment. In 2002 and 2003, Candela Corporation spent over a million in the purchase of property, plant and equipment, however in 2004 that number was cut in half....