12 For the years ended December 31, 2001 2000 1999 Operating Activities: Net income $ 2,946 $ 32,709 $ 41,172 Adjustments to reconcile net income to net cash from operating activities — Depreciation and amortization 29,568  28,680  27,850  Deferred income taxes 7,052  7,166  8,900  Loss / (gain) on sale of fixed assets 84  (995) — Changes in operating assets and liabilities — Accounts receivable, net (960) 5,577  (5,213) Inventories 14,462 (5,905) (3,615) Prepaid expenses and other 283  (4,242) (6,937) Other assets, net 3,293  (2,142) (1,015) Accounts payable 6,548  4,292  (8,793) Accrued expenses and other (625) (12,738) (8,181) Net cash provided by operating activities 62,651  52,402  44,168  Investing Activities: Capital expenditures (23,968) (28,720) (17,589) Proceeds from sale of fixed assets — 2,176  — Business acquisitions and other 44  786  (34,209) Net cash used for investing activities (23,924) (25,758) (51,798) Financing Activities: Proceeds from long-term debt 1,309  — 5,114  Repayments of long-term debt (1,038) (1,308) (168) Net borrowings (repayments) under credit agreement (37,060) (23,191) 4,712  Debt issuance costs (3,053) — — Net cash (used for) provided by financing activities (39,842) (24,499) 9,658  Effect of exchange rate changes on cash and cash equivalents (110) (475) 20  Net change in cash and cash equivalents (1,225) 1,670 2,048 Cash and cash equivalents at beginning of period 5,594 3,924 1,876 Cash and cash equivalents at end of period $ 4,369 $ 5,594 $ 3,924 Supplemental disclosure of cash flow information: Cash paid for interest $ 29,534  $ 27,698  $ 29,967  Cash (received) paid for income taxes $ (9,229) $ 14,761  $ 16,180 For the years ended December 31, 2001 2000 1999 Net Sales $584,468 $667,192 $675,221 Costs and Expenses: Cost of goods sold 449,386 496,080 487,349 Selling, general and administrative 99,587 95,946 90,567 Operating Income 35,495 75,166 97,305 Interest expense, net 31,308 29,492 30,741 Other expense / (income), net 291 (1,120) (458) Income Before Income Taxes 3,896 46,794 67,022 Provision for income taxes 950 14,085 25,850 Net Income $ 2,946 $ 32,709 $ 41,172 Basic Net Income per Share $ 0.13 $ 1.46 $ 1.84 Weighted Average Shares Outstanding 22,397 22,397 22,397 Diluted Net Income per Share $ 0.13 $ 1.46 $ 1.84 Weighted Average Shares Outstanding 22,467 22,397 22,397 Stoneridge, Inc. and Subsidiaries Stoneridge, Inc. and Subsidiaries 13 The accompanying notes to consolidated financial statements are an integral part of these consolidated statements. The accompanying notes to consolidated financial statements are an integral part of these consolidated statements. CONSOLIDATED STATEMENTS OF INCOME CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (in thousands, except per share data)