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....

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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 200-300 words



Answered Same DayDec 20, 2021

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

Robert answered on Dec 20 2021
122 Votes
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), the Company reported a net loss...
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