38 TOSHIBA CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS CONSOLIDATED STATEMENTS OF CASH FLOWS Thousands of U.S. dollars Millions of yen (Note 3) 2003 2002 2003 Cash flows from operating activities Net income (loss) ¥ 18,503 ¥(254,017) $ 154,192 Adjustments to reconcile net income (loss) to net cash provided  by operating activities— Depreciation and amortization 260,835 326,239 2,173,625 Provisions for pension and severance costs, less payments 20,296 (45,621) 169,133 Deferred income tax benefit (2,454) (150,100) (20,450) Equity in income of affiliates (2,582) (2,440) (21,516) Loss from sales, disposal and impairment of property and securities, net 30,337 94,579 252,808 Minority interest in loss of consolidated subsidiaries (11,330) (6,315) (94,417) (Increase) decrease in notes and accounts receivable, trade (13,520) 118,775 (112,667) Decrease in finance receivables, net 2,538 32,056 21,150 Decrease in inventories 17,856 141,137 148,800 (Increase) decrease in other current assets (35,299) 4,354 (294,158) (Increase) decrease in long-term receivables (15,283) 4,366 (127,358) Decrease in long-term finance receivables, net 52,697 28,434 439,142 Increase (decrease) in notes and accounts payable, trade 6,392 (108,060) 53,267 Increase (decrease) in accrued income and other taxes 13,183 (19,038) 109,858 Decrease in advance payments received (16,860) (16,964) (140,500) (Decrease) increase in accounts payable and other liabilities (53,706) 1,780 (447,551 ) Net cash provided by operating activities 271,603 149,165 2,263,358 Cash flows from investing activities Proceeds from sale of property 151,319 65,604 1,260,992 Proceeds from sale of securities 13,897 29,714 115,808 Acquisition of property and equipment (249,253) (364,671) (2,077,108) Purchase of securities (22,557) (39,489) (187,975) (Increase) decrease in investments in affiliates (12,409) 4,956 (103,408) Increase in other assets and other (28,985) (21,693) (241,542) Net cash used in investing activities (147,988) (325,579) (1,233,233) Cash flows from financing activities Proceeds from long-term debt 363,086 322,941 3,025,716 Repayment of long-term debt (280,965) (420,726) (2,341,375 ) (Decrease) increase in short-term borrowings (238,600) 114,913 (1,988,333) Dividends paid (2,428) (16,045) (20,233) Proceeds from stock offering by subsidiaries 525 52,523 4,375 Repurchase of subsidiary common stock from minority shareholder (604) — (5,033) Purchase of treasury stock (770) (111) (6,417) Net cash (used in) provided by financing activities (159,756) 53,495 (1,331,300) Effect of exchange rate changes on cash and cash equivalents (7,193) 5,756 (59,941) Net decrease in cash and cash equivalents (43,334 ) (117,163) (361,116) Cash and cash equivalents at beginning of year 370,432 487,595 3,086,933 Cash and cash equivalents at end of year ¥327,098 ¥ 370,432 $2,725,817 Supplemental disclosure of cash flow information  (Note 23) Cash paid during the year for— Interest ¥ 31,932 ¥ 39,347 $ 266,100 Income taxes ¥ 43,094 ¥ 55,340 $ 359,117 Toshiba Corporation and its subsidiaries For the years ended March 31, 2003 and 2002 The accompanying notes are an integral part of these statements.