bunge 2004 annual report consolidated statements of cash flows The accompanying notes are an integral part of these consolidated financial statements. 54 Year Ended December 31, (U.S. dollars in millions) 2004 2003 2002 operating activities Net income $ 4 46 69 9 $ 411 $ 255 Adjustment to reconcile net income to cash provided by (used for) operating activities:  Gain on sale of soy ingredients business – (111) – Foreign exchange (gain) loss on debt ((8 85 5)) (120) 126 Impairment of assets 1 17 7 56 5 Bad debt expense 5 54 4 6 37 Provision for recoverable taxes 2 (38) 44 Depreciation, depletion and amortization 2 21 12 2 184 168 Deferred income taxes ((5 56 6)) (17) (4) Discontinued operations – 7 (3) Minority interest 1 14 46 6 104 102 Changes in operating assets and liabilities, excluding the effects of acquisitions:  Trade accounts receivable ((3 39 98 8)) (129) (116) Inventories 3 32 28 8 (249) (728) Recoverable taxes ((8 86 6)) 34 (106) Prepaid commodity purchase contracts 2 21 11 1 (76) (60) Advances to suppliers ((3 34 41 1)) (30) (110) Trade accounts payable 1 16 64 4 174 469 Arbitration settlement (Note 21) – (57) – Unrealized loss (gain) on derivative contracts 1 17 7 (63) (40) Margin deposits 5 54 4 (86) (6) Accrued liabilities 8 89 9 (41) 117 Other—net 5 – (22) Cash provided by (used for) operating activities 8 80 02 2 (41) 128 investing activities Payments made for capital expenditures ((4 43 37 7)) (304) (240) Business acquisitions, net of cash acquired ((3 35 55 5)) (196) (856) Investments in affiliates ((2 24 4)) – – (Investments in) proceeds from related parties ((1 13 3)) 41 – Investment in notes receivable ((2 26 6)) – – Proceeds from disposal of property, plant and equipment 1 14 4 28 9 Proceeds from sale of assets held for sale – 450 16 Proceeds from sale of discontinued operations – 82 – Cash (used for) provided by investing activities ((8 84 41 1)) 101 (1,071) financing activities Net change in short-term debt ((3 34 48 8)) (381) (185) Proceeds from long-term debt 8 86 60 0 851 1,937 Repayment of long-term debt ((6 67 78 8)) (529) (706) Proceeds from sale of common shares 3 34 48 8 7 293 Redemption of redeemable preferred stock ((1 17 70 0)) – – Dividends paid to shareholders ((5 51 1)) (42) (37) Dividends paid to minority interest ((3 35 5)) (63) (28) Proceeds from receivable from former shareholder – 55 21 Cash (used for) provided by financing activities ((7 74 4)) (102) 1,295 Effect of exchange rate changes on cash and cash equivalents 5 56 6 61 (81) Net (decrease) increase in cash and cash equivalents ((5 57 7)) 19 271 Cash and cash equivalents, beginning of period 4 48 89 9 470 199 Cash and cash equivalents, end of period $ 4 43 32 2 $ 489 $ 470