candela corporation - DeAnaJ.Joyner UniversityofPhoenix/Axia

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
DeAna J. Joyner University of Phoenix/Axia Candela Corporation Summary
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Summary analysis of cash flow statements June 29, 2002 Candela Corporation Case had a net loss of $2,154,000. This of course, was calculated by the accruals method. In order to reach the real cash flows, non-cash expenses had to be added back. Of these, the most important additions were loss from discontinued operations and notional interest on stock warrants; the two most important subtractions were in respect of deferred taxes and foreign currency exchange rate difference. The analysis of working capital showed that: Receivables, inventory and tax payable increased by a significant amount. Warranty costs, payables and other assets decreased, but by a lower margin. This shows that the working capital adjustments resulted in a gross outflow of cash thereby causing cash outflow in the form of operating activities. In investing activities, we see only one item and that is the purchase of fixed assets, therefore causing an outflow in terms of investing activities.
Background image of page 2
In financing activities, the overall outflow was tried to be brought under control by means of share issue and borrowing modest debt, but rather due to previous commitments, the company had to buy back stock and also repay its existing debt. This caused another outflow of cash in financing activities. Since the results of operating,
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 6

candela corporation - DeAnaJ.Joyner UniversityofPhoenix/Axia

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online