CONSOLIDATED STATEMENTS OF CASH FLOWS Lowe's Companies, Inc. and Subsidiary Companies Dollars in Thousands Fiscal Fiscal 1993 1992 __________________________________________________________________________________________________________________ Cash Flows From Operating Activities: Net Earnings $131,786 $84,720 Adjustments to Reconcile Net Earnings to Net Cash Provided By Operating Activities: Depreciation 80,530 69,820 Amortization of Original Issue Discount 1,615 Store Restructuring Accrual Increase (Decrease) in Deferred Income Taxes 5,860 8,231 Loss on Disposition/Writedown of Fixed and Other Assets 8,969 1,929 Decrease (Increase) in Operating Assets: Accounts Receivable - Net (13) 62,451 Merchandise Inventory (259,512) 8,600 Other Operating Assets (21,385) (20,352) Increase (Decrease) in Operating Liabilities: Page 36 &F Accounts Payable 136,694 22,770 Employee Retirement Plans 32,937 4,173 Accrued Store Restructuring (8,905) (10,765) Other Operating Liabilities 17,123 19,173 Net Cash Provided by Operating Activities 125,699 250,750 __________________________________________________________________________________________________________________ Cash Flows from Investing Activities: Decrease (Increase) in Investment Assets: Short-Term Investments (29,315) (1,174) Purchases of Long-Term Investments (41,714) (12,500) Proceeds from Sale/Maturity of Long-Term Investments 24,576 580 Other Long-Term Assets 1,645 (2,213) Fixed Assets Acquired (336,888) (243,262) Proceeds from the Sale of Fixed and Other Long-Term Assets 27,641 9,642 Net Cash Used in Investing Activities (354,055) (248,927) __________________________________________________________________________________________________________________ Cash Flows from Financing Activities: Sources: Long-Term Debt Borrowings 281,915 217,969 Net Increase (Decrease) in Short-Term Borrowings (912) (140,640) Stock Options Exercised 1,504 1,019 Total Financing Sources 282,507 78,348 __________________________________________________________________________________________________________________ Uses: Repayment of Long-term Debt (6,276) (36,157) Cash Dividend Payments (23,571) (21,153) Common Stock Purchased for Retirement Total Financing Uses (29,847) (57,310) Net Cash Provided by Financing Activities 252,660 21,038 __________________________________________________________________________________________________________________ Net Increase in Cash and Cash Equivalents 24,304 22,861 Cash and Cash Equivalents, Beginning of Year 48,949 26,088 Cash and Cash Equivalents, End of Year $73,253 $48,949 __________________________________________________________________________________________________________________ See accompanying notes to consolidated financial statements.