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Candela Corporation

In: Business and Management

Submitted By niknkids
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Analyzing a Summary Analysis for Candela Corporation

Analyzing a Summary Analysis
To analyze a statement of cash flow means to investigate the cash flow of a company's operations, and study the cash inflows and outflows. Candela had severe growth in 2002 that severely affects the net cash of operating activities. Analyzing the cash flow may have given Candela the opportunity to change its cash from operations. An analysis of a cash flow will give the reader an indication of what changes would improve the company's growth.
A cash flow statement divides three functions of a business into operating, investing, and financing. Interpreting the information is essential for a creditor, banker, investor, or even management. The cash flow provides details of cash changes between the periods of other statements. One of the most important factors is how the cash outflow reduces the inflows, and the effect each may have on operations. The details from the cash are taken from the balance and income statements (Fraser & Ormiston, 2007)..
The Candela Corporation provides laser systems for the medical field. Performance of laser treatments are cosmetic, or necessary removal of a variety of undesirable physical appearances. Candela provides laser systems worldwide. An increasing desire of improving physical appearance among Baby Boomers contributes to Candela's growth in the 1990s (Fraser & Ormiston, 2007).
In 2002, Candela's consolidated cash flow statement shows a net cash from operations in the negative amount of $7,071,000, which is higher than the loss of net income of $2,154,000. The operating activities affecting the cash are increases in accounts receivable and inventory. The accounts payable also influences the cash because payables has a decrease of $3,069,000. Investments are an outflow when purchasing property, plant, and equipment (PPE). The company growth

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