MOVADO GROUP, INC. Consolidated Statements of Cash Flows Fiscal Year Ended January 31, (in thousands) 2001 2000 1999 Cash flows from operating activities: Net income $20,767 $13,721 $20,973 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 6,341 5,189 5,380 Deferred and noncurrent foreign income taxes (1,342) (1,636) 1,764 Provision for losses on accounts receivable 2,083 1,077 1,304 Provision for losses on inventory 1,710 7,263 — Gain on disposition of business — (4,752) — Changes in current assets and liabilities: Trade receivables (4,831) 2,469 (24,693) Inventories (20,043) 14,609 (19,925) Other current assets (3,383) (6,269) (1,265) Accounts payable 11,142 (7,004) 4,108  Accrued liabilities 9,322 4,464 3,352 Deferred and current taxes payable 9,800 (2,532) 229 Other noncurrent assets (5,960) 2,305 (314) Other noncurrent liabilities (335) (629) (29) Net cash provided by (used in) operating activities 25,271 28,275 (9,116) Cash flows from investing activities: Capital expenditures (10,833) (10,125) (11,707) Proceeds from disposition of business — 28,409 — Goodwill, trademarks and other intangibles (852) (755) (1,835) Sale of subsidiary — — 2,646 Net cash (used in) provided by investing activities (11,685) 17,529 (10,896) Cash flows from financing activities: Repayment of Senior Notes (5,000) (10,000) (5,000) Proceeds from issuance of Series A Senior Notes — — 25,000 Net (payment of) proceeds from current bank borrowings (4,700) 6,300 2,200 Principal payments under capital leases — (69) (387) Stock options exercised 840 499 627 Dividends paid (1,206) (1,247) (1,026) Purchase of treasury stock (7,329) (17,593) (2,860) Net cash (used in) provided by financing activities (17,395) (22,110) 18,554 Effect of exchange rate changes on cash 253 (2,705) (3,790) Net (decrease) increase in cash (3,556) 20,989 (5,248) Cash at beginning of year 26,615 5,626 10,874 Cash at end of year $23,059 $26,615 $05,626 See Notes to Consolidated Financial Statements 40