Current liabilities increased by 28.1 percent, or ¥872.2 billion, to ¥3,974.7 billion. This increase included changes in the scope of consolidation of ¥144.4 billion and an increase in short-term borrowings for sales financing of ¥558.5 billion. PERFORMANCE Nissan Annual Report 2004 13 In total, cash and cash equivalents increased by ¥95.6 billion to ¥289.8 billion from fiscal 2004. Cash from financing activities totaled ¥521.0 billion, including an increase in short-term borrowing of ¥666.2 billion, offset by ¥94 billion for the payment of dividends and ¥26 billion for the acquisition of treasury stock. Cash used for investing activities increased by ¥108.9 billion to ¥865.0 billion. This increase was mainly due to an increase of leased vehicles in the U.S. Cash from operating activities was ¥369.4 billion, below the previous year’s level of ¥797.4 billion. This drop was primarily caused by a ¥331.2 billion increase in finance receivables in the U.S. and Japan. There were also increases in inventory and income tax paid. In 2004, total shareholder equity increased from ¥2,024.0 billion to ¥2,465.8 billion. This gain was primarily due to net income of ¥512.3 billion, offset by dividends paid totaling ¥101.2 billion. Consolidated shareholder equity represented 29 percent of total revenues and 25 percent of total assets. Net non-operating expenses totaled ¥5.5 billion, ¥9.7 billion lower than last year. This was primarily due to a ¥5.3 billion decrease in financial costs and a ¥5.3 billion increase in equity in earnings of unconsolidated subsidiaries and affiliates, thanks mainly to Renault. Net extraordinary losses totaled ¥62.5 billion, ¥10.7 billion lower than last year, mainly due to the sale of the site of the former Murayama plant. Net income before taxes came to ¥793.2 billion. Income taxes totaled ¥258.0 billion, with an effective consolidated tax rate of 33 percent. Minority interests amounted to ¥22.9 billion, mainly from Yulon Nissan Motor. As a result, net income reached ¥512.3 billion, an increase of ¥8.6 billion. In 2004, total consolidated assets increased by 25.3 percent to ¥9,848.5 billion.  Current assets increased by 36.4 percent, or ¥1,372.4 billion, to ¥5,139.4 billion. This increase included changes in the scope of consolidation by ¥271.1 billion and an increase in sales finance receivables by ¥840.6 billion thanks to increased sales in the U.S. Fixed assets increased by 15.1 percent, or ¥616.7 billion, to ¥4,708.0 billion. Property, plant and equipment valuation increased by ¥593.6 billion, mainly due to capital expenditures of ¥477.5 billion and an increase in leased vehicles.  FINANCIAL POSITION Balance Sheet Cash Flow Net Income 1,100 1,000 900 800 700 FY03 OP FY04 OP Forex Scope of  consolidation V olume /mix Sales expenses Purchasing cost reduction Product enrichment R&D expenses Manu- facturing  expenses  Warranty expenses G&A and others  824.9 -78 +31 +284 –114 +131 –92 –44 –15 –41 –25.7 861.2 Impact on Operating Profit (Billion Yen) 1,200 1,000 800 600 400 200 0 -200 Cash Debt Net debt  at end  of FY03 Net debt  of FY04  Operating activities before tax Tax paid Investing activities Dividend  paid Other  financial  activities FX rate  impact +1,082.2 –203.0 –450.7 –26.0 –94.0 –99.1 +10.0 205.8 –13.6 Treasury  stock Net Cash Flow (automotive) (Billion Yen)