Pioneer-Standard Electronics, Inc. and Subsidiaries See accompanying Notes to Consolidated Financial Statements. 28 March 31 (Dollars In Thousands) 2003 2002 ASSETS Current Assets Cash and cash equivalents $318,543 $ 21,400 Accounts receivable, net of allowance of $2,969 in 2003 and $3,156 in 2002 170,708 207,744 Inventories, net 48,285 74,145 Deferred income taxes 6,244 7,208 Prepaid expenses 737 1,181 Assets of discontinued operations 43,367 385,512 Total current assets 587,884 697,190 Investments and Other Assets Goodwill 117,545 117,462 Investments in affiliated companies 19,592 28,169 Other assets 10,625 10,831 Property and Equipment, at cost Land 480 77 Buildings 5,542 2,119 Furniture and equipment 54,825 85,425 Software 29,952 59,574 Leasehold improvements 14,507 18,373 105,306 165,568 Less accumulated depreciation and amortization 67,069 102,283 Property and equipment, net 38,237 63,285 Total Assets $773,883 $916,937 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities Accounts payable $139,185 $137,244 Accrued liabilities 18,901 25,054 Liabilities of discontinued operations 26,127 74,286 Total current liabilities 184,213 236,584 Long-Term Debt 130,995 179,000 Deferred Income Taxes 7,000 13,872 Other Long-Term Liabilities 9,450 3,109 Mandatorily Redeemable Convertible Trust Preferred Securities 143,675 143,675 SHAREHOLDERS’ EQUITY Serial preferred shares, without par value; authorized 5,000,000; issued and outstanding — none — — Common shares, without par value, at $0.30 stated value: authorized 80,000,000 shares; 32,056,950 and 31,781,671 shares outstanding in 2003 and 2002, respectively, including 3,589,940 and 3,965,740, subscribed-for shares, in 2003 and 2002, respectively 9,535 9,452 Capital in excess of stated value 113,655 133,932 Retained earnings 214,448 259,876 Unearned employee benefits (30,299) (56,115) Unearned compensation on restricted stock (4,575) (3,289) Accumulated other comprehensive loss (4,214) (3,159) Total shareholders’ equity 298,550 340,697 Total Liabilities and Shareholders’ Equity $773,883 $916,937 consolidated balance sheets