Pioneer-Standard Electronics, Inc. and Subsidiaries consolidated statements of cash flows Year ended March 31 (Dollars in Thousands) 2003 2002 2001 Cash Flows From Operating Activities: Loss from continuing operations, including cumulative effect of change in accounting principle $ (60,855) $ (2,911) $ (18,316) Adjustments to reconcile loss from continuing operations to net cash provided by operating activities: Cumulative effect of change in accounting principle 34,795 — — Investment impairment 14,600 750 — Write-off of deferred financing fees 1,788 — 771 Write-down of information technology system assets — — 14,200 Depreciation 8,829 8,426 8,699 Amortization 7,994 15,279 12,857 Deferred income taxes (5,545) (1,115) 3,012 Changes in working capital, excluding effect of discontinued operations Accounts receivable 37,036 52,142 (47,785) Inventories 25,860 40,156 61,091 Accounts payable 1,941 (8,096) 13,787 Accrued liabilities (5,822) 2,619 6,856 Other working capital 1,607 (557) (3,392) Other 1,374 935 1,135 Total adjustments 124,457 110,539 71,231 Net cash provided by operating activities 63,602 107,628 52,915 Cash Flows From Investing Activities: Additions to property and equipment (8,404) (5,837) (18,792) Proceeds from sale of Industrial Electronics Division 226,649 — — Investments in affiliated companies — (951) (13,862) Proceeds from sale of assets 1,389 — — Net cash provided by (used for) investing activities 219,634 (6,788) (32,654) Cash Flows From Financing Activities: Payments on notes payable — — (26,086) Revolving credit borrowings 7,780 664,950 1,311,350 Revolving credit payments (7,780) (905,890) (1,240,410) Accounts receivable securitization financing borrowings 17,600 248,290 — Accounts receivable securitization financing payments (46,600) (219,290) — Buyback of 9.5% Senior Notes (20,218) - — Principal payments under long-term obligations (22) (189) (3,009) Debt financing costs paid (631) (666) (1,463) Issuance of common shares under company stock option plan 2,151 575 2,518 Dividends paid (3,350) (3,323) (3,298) Net cash provided by (used for) financing activities (51,070) (215,543) 39,602 Cash flows provided by (used for) continuing operations 232,166 (114,703) 59,863 Cash flows provided by (used for) discontinued operations 64,977 94,722 (52,735) Net Increase (Decrease) in Cash 297,143 (19,981) 7,128 Cash at Beginning of Year 21,400 41,381 34,253 Cash at End of Year $318,543 $ 21,400 $ 41,381 Supplemental Disclosures of Cash Flow Information: Cash payments for interest $ 15,145 $ 22,975 $ 32,973 Cash payments for income taxes $ 3,614 $ 2,392 $ 25,493 Distributions on convertible trust preferred securities $ 12,123 $ 9,703 $ 9,703 Change in value of available-for-sale securities, net of tax $ (955) $ (5,936) $ (4,188) See accompanying Notes to Consolidated Financial Statements. 30