Candela Corporation Axia College of University of Phoenix Candela Corporation 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 Axia College 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 renewed equipment warranties The net cash provided by operating activities looks to have gone from a loss in 2002 to a large profit in 2003 and then a decrease yet still a profit for 2004 It appears on the operations level that management needs to do more to regulate the company s finances so there is not an up and down variance each year The cash flow from investing activities shows me that in the last three years they had large amount of investments in 2002 and 2003 but now they are letting them decrease The cash flow from financing activities states that the proceeds from issuance of common stock have increased significantly from 2002 to 2003 and rose a little more in 2004 The repurchases of stock has not happened sense 2002 and the principle payment of long term debt grew in 2003 from 2002 and shows no activity for 2004 Same goes for the net borrowing on line of credit it appears that Candela Corporation is current on payments to line of credit So the net cash from financial activities looks great for 2004 The cash and cash equivalents for each year have increased steadily After reviewing the consolidated statement of cash flows for Candela Corporation I believe the company is making a profit but perhaps need some control over their operating activities Reference Axia College 2007 Statement of Cash Flows Retrieved June 14 2010 from Axia College Week Six ACC 230
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