ACC 230 Week 6 CheckPoint Analyzing Statements of Cash Flows

ACC 230 Week 6 CheckPoint Analyzing Statements of Cash...

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ANSWER KEY CASE 4.2 CANDELA CORPORATION 1. Candela Corporation Statement of Cash Flows Summary Analysis For the Years Ended July 3, 2004, June 28, 2003, and June 29, 2002 2004 % 2003 % 2002 % Inflows: Cash from operations 1,13 2 19 11,655 65 0 0 Proceeds from issuance of common stock 4,70 7 78 4,620 26 394 30 Net borrowings on line of credit 0 0 0 0 50 4 Effect of exchange rate changes 172 3 1,552 9 890 66 Total Inflows 6,01 1 100. 0 17,827 100. 0 1,334 100. 0 Outflows: Cash used in operations 0 0 0 0 7,071 52 Purchases of property, plant and equipment 685 100 1,227 22 1,058 8 Repurchases of treasury stock 0 0 0 0 5,215 38 Principal payments of long-term debt 0 0 3,330 59 370 2 Net repayments on line of credit 0 0 1,114 19 0 0 Total Outflows 685 100. 0 5,671 100. 0 13,714 100. 0 Change in cash 5,32 6 12,156 (12,380 ) Neo Candela Corporation has volatile cash flow from operating activities (CFO) over the three years from 2002 to 2004. The firm experienced a net loss in 2002, but has since recorded net profits in 2003 and 2004. CFO was negative and much worse than the net
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This note was uploaded on 01/24/2012 for the course ACC 220 ACC 220 taught by Professor Black during the Spring '11 term at University of Phoenix.

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ACC 230 Week 6 CheckPoint Analyzing Statements of Cash...

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