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Candela Corporation Case Essay

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Candela Corporation Case
In 2002, Candela Corporation statement of cash flows shows a net loss of income at $2,154,000. The reason for the loss is from accrual methods as non-cash expenses are added back. This method shows the company the true cash flows of the business. Some of the items that were added back in that had a significant affect is from loss of the discontinued operations and the interest firm the stock warrants. The categories that had significant subtractions were the foreign currency exchange rate difference and the respect of the deferred taxes. The results are the working capital that had resulted in a gross outflow of cash flow, which caused the cash outflow to show from the operating activities. There is a purchase of fixed assets in the investment activities, which caused an outflow of cash. In the financing activities, it looks as if the total outflows were trying to stay in control with acquiring a modest debt and share issue. Howe...

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