CONSOLIDATED STATEMENTS OF C ASH FLOWS See Notes to Consolidated Financial Statements LEE ENTERPRISES / 2000 Annual Report 17 Year Ended September 30,  2000 1999  1998 (In Thousands ) Cash Provided by Operating Activities: Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 83,663 $ 67,973 $ 62,233 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization . . . . . . . . . . . . . . . . . . . 41,263 39,748 37,576 Gain on sale of publishing properties . . . . . . . . . . . . . (18,439) (738) – Distributions less than earnings of associated companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,891) (2,220) (1,922) Change in assets and liabilities, net of effects from business acquisitions: (Increase) decrease in receivables . . . . . . . . . . . . . . 3,727 (6,154) (3,131) (Increase) decrease in inventories and other . . . . . . 1,424 (749) 1,427 Increase (decrease) in accounts payable, accrued expenses and unearned income . . . . . . . . . . . . . . 7,831 (2,117) 2,370 Increase (decrease) in income taxes payable . . . . . . 2,421 (1,097) 1,721 Other, primarily deferred items . . . . . . . . . . . . . . . . 7,890 3,206 465 Net cash provided by operating activities  . . . 126,889 97,852 100,739 Cash (Required for) Investing Activities: Acquisitions, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (71,609) (15,416) (11,944) Purchase of property and equipment . . . . . . . . . . . . . . (32,494) (32,431) (26,725) Proceeds from sale of publishing properties . . . . . . . . 8,775 492 – Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 929 (3,867) (952) Net cash (required for) investing activities  . . (94,399) (51,222) (39,621) Cash (Required for) Financing Activities: Purchase of common stock . . . . . . . . . . . . . . . . . . . . . (20,021) (11,830) (51,388) Cash dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . (28,288) (26,623) (25,160) Proceeds from long-term borrowings . . . . . . . . . . . . . . – – 185,000 Proceeds from (payments on) short-term notes payable, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,500 6,000 (145,000) Principal payments on long-term borrowings . . . . . . . – (25,000) (25,000) Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,210 4,418 3,208 Net cash (required for) financing activities  . . (13,599) (53,035) (58,340) Net increase (decrease) in cash and cash equivalents  . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,891 (6,405) 2,778 Cash and cash equivalents: Beginning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,536 16,941 14,163 Ending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 29,427 $ 10,536 $ 16,941 Lee Enterprises, Incorporated and Subsidiaries