Candela Corporation

Candela Corporation

Student Name

Axia College at the University of Phoenix

Candela Corporation and Subsidiaries have been working for over 34 years developing and commercialize aesthetic laser systems that allow physicians and personal care providers to treat a variety of cosmetic and medical conditions such as removal of spider veins, scars, stretch marks, warts, as well as hair removal and age spots, freckles and tattoos. Other skin treatments such as psoriasis and acne and acne scars are also treated. (Frasier, Ormiston 2007)

Going from top to bottom on The Candela Corporation and Subsidiaries Consolidated Statement of Cash Flows; for the operating activities, 2002 shows an alarming loss in the net income while 2003 and 2004 for the company are showing a significant and steady climb in the net income. In 2004 there was a new category added called Provision for the disposal of discontinued operations and the category has caused an increased the account for 2004. Loss from discontinued operations grew from 2002 to 2003 but had a significant decline for 2004. Depreciation has increased over the last 3 years as well. Provision for bad debts increased significantly too, but an increase in bad dept is expected as revenue increases. The provision for deferred taxes shows the company went from a loss in 2002 and 2003 to show there was no tax loss in 2004. The tax benefit from exercised stock options has practically doubled sense 2003. The changes in assets and liabilities for the last 3 years have been up and down. Receivables have increased, notes receivable decreased, and inventories have increased. Other current assets, other assets have also increased. Accounts payable has made a significant decrease in the last 3 years as well as accrued payroll expenses. The accrued payroll decreasing could mean that the amount of employees over the years has decreased as well. The accrued warranty costs have increased as well; this could mean that the company...