Case- 4.3; Gaines Sole . titte- Inc. 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. 01' its total revenue of $458.4 million for scal 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 For the Fiscal Years Ended April 30. in thousands of dollars 20\") 2009 2008 Cash flows from Operating activities: Net (loss) income 3 (1.458) 5 2.236 $ 14.504 Adjustments to reconcile net (loss) income to cash provided by operating activities: Depreciation and amortization 9.452 9.991 9.518 Deferred income taxes (3.210) (5.953) 2.501 Other-than-te mporary impairment charge - 2.290 Stock-based compensation 3,787 3.241 1,805 Loss (gain) on sale of assets 2.464 (622) (2287) Other noncash items 2.177 2.220 2.191 Changes in operating accounts. excluding effects of acquisitions: Accounts receivable 5.126 25.795 (5.719) inventories 5,996 5,820 (6.220) Prepaid expenses and other assets 71 79 696 Accounts payable and other accrued liabilities 706 (27.424) (7.095) Accrued compensation and benets (15) (7,899) 311 Net cash provided by operating activities 25,096 9,774 10,205 Cash nous from investing activities: Capital expenditures (4.489) (8.187) (8.589) Proceeds from sale of available for sale 46-1 705 751 investments Purchases of available for sale investments (308) (457) (753) Proceeds from saie of net assets 13.709 2.622 345 Business acquisitions (3.473) (34 .273) (4.650) Investments in intangible assets (1.368) (828) (868) Net cash provided by (used for) investing activities 4.535 (40.418) (13.764) ____'___' Cash flows from financing activities: Debt repayments (117,176) (80,271) (314,256) Debt proceeds 89,525 110,686 321,862 Debt issuance costs (494) (1,174) (993) Common stock activities (486) 898 1,373 Other financing activities (341) Net cash (used for) provided by financing activities (28,972) 30,139 7,986 Effect of exchange rate changes on cash 333 (3,074) 1,413 Increase (decrease) in cash and cash equivalents 992 (3,579) 5,840 Cash and cash equivalents at beginning of year 10,313 13,892 8,052 Cash and cash equivalents at end of year $ 11,305 $ 10,313 $ 13,892 Supplemental Schedule of Cash Flow Information Cash paid during the year for: Interest $ 3,475 $ 2,856 $ 3,655 Income taxes, net of refunds $ 4,517 $ 4,456 $ 5,290 The accompanying notes are an integral part of these consolidated financial statements. 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