38 TOSHIBA CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS CONSOLIDATED STATEMENTS OF CASH FLOWS Thousands of U.S. dollars Millions of yen (Note 3) 2003 2002 2003 Cash flows from operating activities Net income (loss) ¥ 18 503 ¥(254 017) $ 154 192 Adjustments to reconcile net income (loss) to net cash provided  by operating activities— Depreciation and amortization 260 835 326 239 2 173 625 Provisions for pension and severance costs  less payments 20 296 (45 621) 169 133 Deferred income tax benefit (2 454) (150 100) (20 450) Equity in income of affiliates (2 582) (2 440) (21 516) Loss from sales  disposal and impairment of property and securities  net 30 337 94 579 252 808 Minority interest in loss of consolidated subsidiaries (11 330) (6 315) (94 417) (Increase) decrease in notes and accounts receivable  trade (13 520) 118 775 (112 667) Decrease in finance receivables  net 2 538 32 056 21 150 Decrease in inventories 17 856 141 137 148 800 (Increase) decrease in other current assets (35 299) 4 354 (294 158) (Increase) decrease in long-term receivables (15 283) 4 366 (127 358) Decrease in long-term finance receivables  net 52 697 28 434 439 142 Increase (decrease) in notes and accounts payable  trade 6 392 (108 060) 53 267 Increase (decrease) in accrued income and other taxes 13 183 (19 038) 109 858 Decrease in advance payments received (16 860) (16 964) (140 500) (Decrease) increase in accounts payable and other liabilities (53 706) 1 780 (447 551 ) Net cash provided by operating activities 271 603 149 165 2 263 358 Cash flows from investing activities Proceeds from sale of property 151 319 65 604 1 260 992 Proceeds from sale of securities 13 897 29 714 115 808 Acquisition of property and equipment (249 253) (364 671) (2 077 108) Purchase of securities (22 557) (39 489) (187 975) (Increase) decrease in investments in affiliates (12 409) 4 956 (103 408) Increase in other assets and other (28 985) (21 693) (241 542) Net cash used in investing activities (147 988) (325 579) (1 233 233) Cash flows from financing activities Proceeds from long-term debt 363 086 322 941 3 025 716 Repayment of long-term debt (280 965) (420 726) (2 341 375 ) (Decrease) increase in short-term borrowings (238 600) 114 913 (1 988 333) Dividends paid (2 428) (16 045) (20 233) Proceeds from stock offering by subsidiaries 525 52 523 4 375 Repurchase of subsidiary common stock from minority shareholder (604) — (5 033) Purchase of treasury stock (770) (111) (6 417) Net cash (used in) provided by financing activities (159 756) 53 495 (1 331 300) Effect of exchange rate changes on cash and cash equivalents (7 193) 5 756 (59 941) Net decrease in cash and cash equivalents (43 334 ) (117 163) (361 116) Cash and cash equivalents at beginning of year 370 432 487 595 3 086 933 Cash and cash equivalents at end of year ¥327 098 ¥ 370 432 $2 725 817 Supplemental disclosure of cash flow information  (Note 23) Cash paid during the year for— Interest ¥ 31 932 ¥ 39 347 $ 266 100 Income taxes ¥ 43 094 ¥ 55 340 $ 359 117 Toshiba Corporation and its subsidiaries For the years ended March 31  2003 and 2002 The accompanying notes are an integral part of these statements.