Candela Corporation Case

In 2004, the cash flow from operations is $1132, which is considerably lower than the net income of $8119.   This can be resulted from the mainly from the increase in AR of $7663, and an increase in assets of $2550 and a decrease in income tax payable of $1312.   Cash flow from operations and from issue of common stock went to purchase new plan assets and to increase the cash balance.   I found the stock options to be extremely important this year, because this shows that the business is continuing to follow its policy of innovation and advancement by providing a future estimate for closures and additions of new lines.   Looking at the investing activities, there are fixed assets of $685,000, which is less than 2003.   This shows that the business bought the bulk of its fixed assets in 2003 and did not need to purchase as much in 2004.   The financing activities saw $4707 shares issued and this was the only substantial inflow of cash. Excluding the investing activities, the cash flow from the other two activities was also positive, giving a positive net cash flow of $5326 and increase the business’s cash reserves.
In 2003, the cash flow from operations is $11655, which is considerably HIGHER than the net income of $6814 due to adjustments for items like loss from discontinued operations of $1013 and increase in liabilities like accrued payroll and income tax payable.   Cash flow from operations and from issue of common stock went to purchase new plan assets, repay long term debt and borrowings, and to increase the cash balance.   The cash inflows were from notes, deferred income, sale of inventory, sale of other assets, a control on payroll costs and taxes.   The cash outflows were from restricted cash, receivables, payment of payables and warranty costs.   This all led to a cash inflow, which made the figure for cash flows positive and $18726 more from last year.   In investing activities, the fixed assets were $169,000 more than in 2002; this caused an outflow in investing...