2004 Annual Report  Nathan’s Famous, Inc. & Subsidiaries page sixteen The accompanying notes are an integral part of these statements. Fifty-Two Fifty-Two Fifty-Three Weeks Ended Weeks Ended Weeks Ended March 28, March 30, March 31, 2004 2003 2002 Cash Flows From Operating Activities: Net income (loss) $ 1,894 $(13,968) $ 1,249 Adjustments to reconcile net income (loss) to net cash provided by  (used in) operating activities: Cumulative effect of change in accounting principle, net of tax benefit — 12,338 — Depreciation and amortization 971 1,907 1,661 Amortization of intangible assets 261 278 888 Amortization of bond premium 127 85 — Gain on disposal of fixed assets (206) (39) (1,226) Gain on sale of available for sale securities (12) (10) — Impairment of long-lived assets 25 1,367 685 Impairment of notes receivable 208 1,425 185 (Recovery of ) provision for doubtful accounts (17) 82 267 Deferred income taxes 945 (585) 509 Changes in operating assets and liabilities: Marketable securities and investment in limited partnership — 981 (4,171) Notes and accounts receivable 294 2 (26) Inventories (354) 203 (69) Prepaid expenses and other current assets 179 627 (295) Other assets 18 32 104 Accounts payable, accrued expenses and other current liabilities 467 (1,647) (2,538) Deferred franchise fees 46 (205) (324) Other liabilities 430 (577) 20 Net cash provided by (used in) operating activities 5,276 2,296 (3,081) Cash Flows From Investing Activities: Proceeds from sale of available for sale securities 2,497 6,088 — Purchase of available for sale securities (5,461) (2,884) — Purchases of property and equipment (449) (562) (2,082) Payments received on notes receivable 797 273 812 Proceeds from sales of property and equipment 489 781 3,348 Net cash (used in) provided by investing activities (2,127) 3,696 2,078 Cash Flows From Financing Activities: Principal repayments of notes payable and capitalized lease obligations (187) (553) (1,353) Repurchase of treasury stock (928) (5,858) (135) Net cash used in financing activities (1,115) (6,411) (1,488) Net change in cash and cash equivalents 2,034 (419) (2,491) Cash and Cash Equivalents, beginning of year 1,415 1,834 4,325 Cash and Cash Equivalents, end of year $ 3,449 $ 1,415 $ 1,834 Cash Paid During the Year for: Interest $ 74 $ 138 $ 264 Income taxes $ 253 $ 57 $ 149 Noncash Financing Activities: Loans to franchisees in connection with sale of restaurants $ 600 $ 44 $ 416 Consolidated Statements of Cash Flows (in thousands)