(Dollar and Share Amounts in Thousands except Per Share Information and as Otherwise Noted)  2004 ANNUAL REPORT – PAGE 22  SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.  2004 2003 2002 Cash flows from operating activities:  Net earnings  $ 130,989 84,120 75,542 Adjustments to reconcile net earnings to net cash provided by operating  activities:  Depreciation of property and equipment  23,643 20,444 16,945 Loss on sale of property and equipment  652 317 304 Gain on sale of DIY Business  — —  $_{(5,934}$)  Bad debt expense  6,931 5,857 5,189 Deferred income taxes  (1,520 ) 3,503 1,106 Tax benefit from exercise of stock options  4,248 1,973 3,428 Amortization of non-compete agreement  67 67 67 Changes in operating assets and liabilities, net of acquisition and  sale of the DIY Business:  Trade accounts receivable  (40,675 ) (29,060)  (13,025) Inventories  (74,449 ) (15,622)  (71,738)  Other current assets  (5,294 ) (2,839)  (1,893)  Accounts payable  (848 )  14,341 $_{6,949}$  Accrued expenses  $_{10,816}$  (464) 5,205 Income taxes, net  338 1,774  (4,326)  Other  2,539 6,212  (207)  Net cash provided by operating activities  57,437 90,623 17,612 Cash flows from investing activities:  Purchases of business and property and equipment  (52,687 ) (50,246)  (42,683)  Proceeds from sale of property and equipment  4,499 4,184 2,693 Proceeds from sale of DIY business  — — 14,935 Proceeds of Industrial Revenue Bond  3,200 — — Purchase of Industrial Revenue Bond  (3,200 )  — $_{—}$  Net decrease (increase) in marketable securities  4,903 6,535  (21,770)  Decrease (increase) in other assets  (252 ) (206  )  $_{25}$  Net cash used in investing activities  (43,537 ) (39,733)  (46,800)  Cash flows from financing activities:  Payment of dividends  (30,350 ) (15,935)  (3,794)  Net cash used in financing activities  (30,350 ) (15,935)  (3,794)  Effect of exchange rate changes on cash  203 499 14 Net increase (decrease) in cash and cash equivalents  (16,247 )  35,454 (32,968) Cash and cash equivalents at beginning of year  49,750 14,296 $^{47,264}$  Cash and cash equivalents at end of year  $ 33,503 49,750 14,296 Supplemental disclosure of cash flow information:  Cash paid during each year for income taxes  $ 74,281 50,442 46,573 2004 Consolidated Statements of Cash Flows