46 Consolidated Statements of Cash Flows Toshiba Corporation and its subsidiaries For the years ended March 31, 2002 and 2001 The accompanying notes are an integral part of these statements. Thousands of U.S. dollars Millions of Yen (Note 3) 2002 2001 2002 Cash flows from operating activities: Net (loss) income ¥(254,017) ¥ 96,168 $(1,909,902) Adjustments to reconcile net (loss) income to net cash provided by  operating activities— Depreciation and amortization 326,239 339,816 2,452,925 Provisions for pension and severance costs, less payments (45,621) (10,667) (343,015) Deferred income tax provision (benefit) (150,100) 42,922 (1,128,572) Equity in income of affiliates (2,440) (9,354) (18,346) Loss (gain) from sales, disposal and impairment of property and securities, net 94,579 (30,758) 711,121 Minority interest in (loss) income of consolidated subsidiaries (6,315) 5,140 (47,481) Decrease in notes and accounts receivable, trade 118,775 34,857 893,045 Decrease in finance receivables, net 32,056 22,255 241,023 Decrease in inventories 141,137 51,755 1,061,180 Decrease (increase) in other current assets 4,354 (70,750) 32,737 Decrease in long-term receivables 4,366 695 32,827 Decrease (increase) in long-term finance receivables, net 28,434 (6,639) 213,789 (Decrease) increase in notes and accounts payable, trade (108,060) 13,804 (812,481) (Decrease) increase in accrued income and other taxes (19,038) 8,672 (143,143) Decrease in advance payments received (16,964) (17,415) (127,549) Increase (decrease) in accounts payable and other liabilities 1,780 (16,860) 13,383 Net cash provided by operating activities 149,165 453,641 1,121,541 Cash flows from investing activities: Proceeds from sale of property 65,604 12,565 493,263 Proceeds from sale of securities 29,714 23,774 223,414 Acquisition of property and equipment (364,671) (257,448) (2,741,887) Purchase of securities (39,489) (13,126) (296,910) Decrease in investments in affiliates 4,956 19,272 37,263 (Increase) decrease in other assets and other (21,693) 38,216 (163,105) Net cash used in investing activities (325,579) (176,747) (2,447,962) Cash flows from financing activities: Proceeds from long-term debt 322,941 233,929 2,428,128 Repayment of long-term debt (420,726) (398,669) (3,163,353) Increase (decrease) in short-term borrowings 114,913 (95,310) 864,007 Dividends paid (16,045) (25,598) (120,639) Proceeds from stock offering by subsidiaries 52,412 — 394,075 Net cash provided by (used in) financing activities 53,495 (285,648) 402,218 Effect of exchange rate changes on cash and cash equivalents 5,756 31,112 43,278 Net (decrease) increase in cash and cash equivalents (117,163) 22,358 (880,925) Cash and cash equivalents at beginning of year 487,595 465,237 3,666,128 Cash and cash equivalents at end of year ¥ 370,432 ¥ 487,595 $ 2,785,203 Supplemental disclosure of cash flow information: Cash paid during the year for— Interest ¥ 39,347 ¥ 52,789 $ 295,842 Income taxes ¥ 55,340 ¥ 61,161 $ 416,090