According to Gerber Scientific Inc.'s (Gerber) Form 10-K, the firm develops, manufac- tures, distributes, and services...

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According to Gerber Scientific Inc.'s (Gerber) Form 10-K, the firm develops, manufac- tures, distributes, and services automated equipment and software in three industries worldwide. Of its total revenue of $458.4 million for fiscal 2010, Gerber generated $257.2 million in sales of printing equipment, software, and related supplies to cus- tomers in the sign making and specialty graphics industry; $155.1 million in sales of sophisticated design and cutting equipment and software to customers in the apparel and industrial markets; and $46.1 million in sales of processing equipment, software, and related supplies to customers in the ophthalmic lens processing industry. Gerber's statements of cash flows follow: GERBER SCIENTIFIC, INC. Consolidated Statements of Cash Flows In thousands of dollars Cash flows from operating activities: Net (loss) income Adjustments to reconcile net (loss) income to cash provided by operating activities: Depreciation and amortization Deferred income taxes Other-than-temporary impairment charge Stock-based compensation Loss (gain) on sale of assets Other noncash items Changes in operating accounts, excluding effects of acquisitions: Accounts receivable Inventories Prepaid expenses and other assets Accounts payable and other accrued liabilities Accrued compensation and benefits Net cash provided by operating activities Cash flows from investing activities: Capital expenditures Proceeds from sale of available for sale investments Purchases of available for sale investments Proceeds from sale of net assets Business acquisitions Investments in intangible assets Net cash provided by (used for) investing activities For the Fiscal Years Ended April 30, 2010 2009 2008 $ (1,458) 9,452 (3,210) 3,787 2,464 2,177 5,126 5,996 71 706 (15) 25,096 (4,489) 464 (308) 13,709 (3,473) (1,368) 4,535 $2,236 9,991 (5,953) 2,290 3,241 (622) 2,220 25,795 5,820 79 (27,424) (7.899) 9,774 (8,187) 705 (457) 2,622 (34,273) (828) (40,418) $14,504 9,518 2,501 1,805 (2,287) 2,191 (5,719) (6,220) 696 (7,095) 311 10,205 (8,589) 751 (753) 345 (4,650) (868) (13,764) Cash flows from financing activities: Debt repayments Debt proceeds Debt issuance costs Common stock activities Other financing activities Net cash (used for) provided by financing activities Effect of exchange rate changes on cash Increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Supplemental Schedule of Cash Flow Information Cash paid during the year for: Interest Income taxes, net of refunds (117,176) 89,525 (494) (486) (341) (28,972) 333 992 10,313 $11,305 (80,271) 110,686 (1,174) 898 30,139 (3,074) (3,579) 13,892 $10,313 (314,256) 321,862 (993) 1,373 7,986 1,413 5,840 8,052 $13,892. $ 3,475 $ 2,856 $ 4,517 $ 4,456 The accompanying notes are an integral part of these consolidated financial statements. $ 3,655 5,290 Required: 1. Using the Consolidated Statements of Cash Flows for Gerber, prepare a summary analysis for the years ended April 30, 2010, 2009, and 2008. 2. Write an analysis and interpretation of the cash flows for Gerber for all three years. Be sure to analyze the cash flows from operating activities, as well as the overall cash inflows and outflows for the firm. 3. Evaluate the creditworthiness of Gerber based on only the cash flow statements. 4. What information from the balance sheet would be useful to a creditor in deter- mining whether to loan Gerber money? According to Gerber Scientific Inc.'s (Gerber) Form 10-K, the firm develops, manufac- tures, distributes, and services automated equipment and software in three industries worldwide. Of its total revenue of $458.4 million for fiscal 2010, Gerber generated $257.2 million in sales of printing equipment, software, and related supplies to cus- tomers in the sign making and specialty graphics industry; $155.1 million in sales of sophisticated design and cutting equipment and software to customers in the apparel and industrial markets; and $46.1 million in sales of processing equipment, software, and related supplies to customers in the ophthalmic lens processing industry. Gerber's statements of cash flows follow: GERBER SCIENTIFIC, INC. Consolidated Statements of Cash Flows In thousands of dollars Cash flows from operating activities: Net (loss) income Adjustments to reconcile net (loss) income to cash provided by operating activities: Depreciation and amortization Deferred income taxes Other-than-temporary impairment charge Stock-based compensation Loss (gain) on sale of assets Other noncash items Changes in operating accounts, excluding effects of acquisitions: Accounts receivable Inventories Prepaid expenses and other assets Accounts payable and other accrued liabilities Accrued compensation and benefits Net cash provided by operating activities Cash flows from investing activities: Capital expenditures Proceeds from sale of available for sale investments Purchases of available for sale investments Proceeds from sale of net assets Business acquisitions Investments in intangible assets Net cash provided by (used for) investing activities For the Fiscal Years Ended April 30, 2010 2009 2008 $ (1,458) 9,452 (3,210) 3,787 2,464 2,177 5,126 5,996 71 706 (15) 25,096 (4,489) 464 (308) 13,709 (3,473) (1,368) 4,535 $2,236 9,991 (5,953) 2,290 3,241 (622) 2,220 25,795 5,820 79 (27,424) (7.899) 9,774 (8,187) 705 (457) 2,622 (34,273) (828) (40,418) $14,504 9,518 2,501 1,805 (2,287) 2,191 (5,719) (6,220) 696 (7,095) 311 10,205 (8,589) 751 (753) 345 (4,650) (868) (13,764) Cash flows from financing activities: Debt repayments Debt proceeds Debt issuance costs Common stock activities Other financing activities Net cash (used for) provided by financing activities Effect of exchange rate changes on cash Increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Supplemental Schedule of Cash Flow Information Cash paid during the year for: Interest Income taxes, net of refunds (117,176) 89,525 (494) (486) (341) (28,972) 333 992 10,313 $11,305 (80,271) 110,686 (1,174) 898 30,139 (3,074) (3,579) 13,892 $10,313 (314,256) 321,862 (993) 1,373 7,986 1,413 5,840 8,052 $13,892. $ 3,475 $ 2,856 $ 4,517 $ 4,456 The accompanying notes are an integral part of these consolidated financial statements. $ 3,655 5,290 Required: 1. Using the Consolidated Statements of Cash Flows for Gerber, prepare a summary analysis for the years ended April 30, 2010, 2009, and 2008. 2. Write an analysis and interpretation of the cash flows for Gerber for all three years. Be sure to analyze the cash flows from operating activities, as well as the overall cash inflows and outflows for the firm. 3. Evaluate the creditworthiness of Gerber based on only the cash flow statements. 4. What information from the balance sheet would be useful to a creditor in deter- mining whether to loan Gerber money?

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