SECTOR STATEMENT OF CASH FLOWS 2004 2003 2002 Financial Financial Financial Automotive  Services Automotive  Services Automotive  Services Cash and cash equivalents at January 1 $ 6,856 $  16,352 $ 6,243 $ 7,071 $ 5,300 $ 3,137 Cash flows from operating activities  before securities trading (Note 20) 1,398 15,501 1,318 15,962 9,465 14,686 Net sales/(purchases) of trading securities 5,600 92 1,630 524 (6,366) (23) Net cash flows from operating activities 6,998 15,593 2,948 16,486 3,099 14,663 Cash flows from investing activities Capital expenditures (6,287) (458) (7,357) (379) (6,761) (502) Acquisitions of retail and other finance receivables and operating leases - (62,852) - (59,503) - (71,050) Collections of retail and other finance receivables and operating leases - 50,810 - 44,118 - 47,074 Net (increase)/decrease in wholesale receivables - (2,174) - (2,762) - (10,654) Net acquisitions of daily rental vehicles - (2,492) - (1,505) - (1,846) Purchases of securities (7,590) (880) (8,925) (1,149) (3,446) (609) Sales and maturities of securities 7,615 799 8,673 709 3,445 479 Proceeds from sales of finance receivables and operating leases - 10,438 - 19,367 - 40,138 Proceeds from sale of businesses 125 412 77 1,625 257 - Net investing activity with Financial Services 4,361 - 3,708 - 1,053 Cash paid for acquisitions (30) - (289) - Cash recognized on initial  consolidation of joint ventures - - 256 - - - Other 101 (465) 716 883 893 Net cash (used in)/provided by  investing activities (1,705) (6,862) (2,852) 1,404 (5,741) 3,923 Cash flows from financing activities Cash dividends (733) - (733) - (743) - Net sales/(purchases) of Common Stock (151) 9 287 Proceeds from mandatorily redeemable  convertible preferred securities - - - - 4,900 - Preferred Stock – Series B redemption (177) Changes in short-term debt (342) 5,279 (237) 1,542 (31) 5,737 Proceeds from issuance of other debt 469 21,754 1,144 21,942 318 15,524 Principal payments on other debt (2,585) (33,436) (1,097) (27,683) (859) (15,760) Net financing activity with Automotive - (4,361) - (3,708) - (1,053) Other (39) (81) (15) (67) (23) (19,560) Net cash (used in)/provided by financing activities (3,381) (10,845) (929) (7,974) 3,672 (15,112) Effect of exchange rate changes on cash 117 388 260 551 37 336 Net transactions with Automotive/Financial Services 1,258 (1,258) 1,186 (1,186) (124) 124 Net increase/(decrease) in cash and cash equivalents 3,287 (2,984) 613 9,281 943 3,934 Cash and cash equivalents at December 31 $  10,143 $  13,368 $ 6,856 $ 16,352 $ 6,243 $ 7,071 The accompanying notes are part of the financial statements. Ford Motor Company and Subsidiaries  For the Years Ended December 31, 2004, 2003 and 2002  (in millions) 5 8