Locate the 2003 Consolidated Statements of Cash Flows for 1-800 Contacts, Inc. Net
income for this...

Question

Locate the 2003 Consolidated Statements of Cash Flows for 1-800 Contacts, Inc. Net
income for this company is on a downward trend while cash provided by operating activities
is on an upward trend. Using any information you can obtain about this company and
industry, write a report explaining this abnormal trend between the net income and the
cash flow numbers and whether this should be a red flag to investors and creditors. I need this in XXXXXXXXXXwords

Robert · Accepted Answer

Net sales for the fiscal year 2003 increased by 11% to USD 187.3 million from USD 168.6 
million in 2002. Majority of this increase in sales was due to the acquisition of Lens Express 
and Lens 1
st
, thus signalling lower incremental sales. The company improved its gross margin 
in 2003 by 770 bps or 7.7%, while posting a net loss for the year. Owing to the higher other 
operating expenses (majority of which were related to the acquisition cost, thus being one-off 
expenses),

Locate the 2003 Consolidated Statements of Cash Flows for 1-800 Contacts, Inc. Net income for this company is on a downward trend while cash provided by operating activities is on an upward trend....

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment