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76 United Microelectronics Corporation Annual Report 2004
Statements of Cash Flows
For the years ended December 31, 2004 and 2003
In thousand NTD
Contents 2004 2003
Cash flows from operating activities:
Net income $31,843,381 $14,020,257
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation 38,595,954 35,855,265
Amortization 1,181,379 1,556,282
Bad debt expenses 107,404 82,389
Loss on decline in market value and obsolescence of inventories 844,906 973,651
Cash dividends received under the equity method 439,514 232,167
Investment loss accounted for under the equity method 2,509,287 629,404
Impairment loss on long-term investments 84,968 713,122
Write-off of deferred charges 269,325 –
Transfer of property, plant and equipment to losses and expenses 2,059 22,584
Gain on disposal of investments (12,513,933) (6,573,588)
Loss (gain) on disposal of property, plant and equipment 86,782 (55,047)
Gain on settlement of exchangeable bonds (295,100) (519,544)
Amortization of bond premiums (10,050) (19,386)
Loss on reacquisition of bonds 59 5,098
Changes in assets and liabilities:
Notes receivable 69,704 (25,138)
Accounts receivable 3,059,813 (5,391,660)
Other receivables 32,434 977,875
Inventories (1,326,015) (649,132)
Prepaid expenses 488,734 128,434
Other financial assets 54,374 (128,539)
Deferred income tax assets – 804,243
Accounts payable (17,577) 1,563,186
Income tax payable 10,696 (13,588)
Accrued expenses 3,198,386 1,027,902
Other current liabilities 134,847 45,124
Compensation interest payable (126,111) 67,938
Capacity deposits (143,127) (50,179)
Accrued pension liabilities 432,879 318,332
Net cash provided by operating activities 69,014,972 45,597,452
Cash flows from investing activities:
(Increase) decrease in marketable securities, net (1,418,762) 1,041,707
Cash proceeds from merger 70,383 –
Decrease in other financial assets, net 1,503,980 1,970,717
Acquisition of long-term investments (11,427,179) (17,994,271)
Proceeds from disposal of long-term investments 6,028,428 8,830,794
Acquisition of property, plant and equipment (48,503,388) (12,582,596)
Proceeds from disposal of property, plant and equipment 283,803 1,326,646
Increase in deferred charges (978,741) (683,685)
Decrease in other assets, net 1,065,478 65,024
Net cash used in investing activities (53,375,998) (18,025,664)
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