Please provide your analysis on the attached problems. Please note that other students in my group have made references to post 204910 and 237047 in the brainmass library. Please include citation.© BrainMass Inc. brainmass.com October 16, 2018, 11:28 pm ad1c9bdddf
For the purpose of cash flow statement analysis we have selected 3 companies from different industries. The companies are:
 Johnson & Johnson (Healthcare)
 AT&T (Telecommunication and wireless)
 General Motors (Automotive)
Summarized below is the cash flow analysis of all the three companies for the most recent year.
Detailed answer attached.
Candela Corporation is engaged in the development and commercialization of aesthetic laser system which is used in various cosmetic and medical conditions. We have performed a detailed analysis of the cash flow statement of the company for the current year and its comparison with the previous two years and summarized below are our key observations:
Attached is the detailed answer.
Statement of Cash Flows; Depreciation; Financial Ratios; horizontal and vertical analysis etc
1. Why is depreciation included in the statement of cash flows?
2. What are the shortcomings of analyzing a company using only one financial ratio?
3. Why has the statement of cash flows become a more popular tool for financial analysis over the past few years?
4. Why is it important to use both horizontal and vertical analysis in analyzing financial statements?
5. What ratios do mortgage companies use in determining the qualifications of home buyers?