COVER SHEET PHILIPPINE SEVEN CORPORATION - 7-Eleven

PHILIPPINE SEVEN CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWSYears Ended December 312008 2007 2006CASH FLOWS FROMOPERATINGACTIVITIESIncome before income tax 144,727,419 96,257,442 47,170,908Adjustments for:Depreciation and amortization(Notes 8 and 19)179,639,0 159,634,3154,046,2590686Interest expense (Notes 11, 14, 15 and 21)25,332,855 31,527,417 35,913,785Provision for impairment of receivables(Notes 5 and 19)7,069,507 346,678 2,903,498Loss on:Impairment of goodwill (Note 10) 4,611,368 – –Sale of property and equipment 890,771 215,566 5,165,280Interest income (Notes 9, 22 and 26) (4,186,908) (3,401,675) (2,760,331)Amortization of:Deferred lease (Notes 10 and 26) 1,902,361 1,719,810 1,660,064Deferred revenue on finance lease(Note 16)(764,254) –Software and other program costs(Notes 10 and 19)Operating income before workingcapital changes(1,310,151)2,105,1261,050,536 1,757,238360,781,354286,585,906245,856,701Decrease (increase) in:Receivables (78,401,639) (21,565,134) 28,732,561Inventories (15,582,536) 7,952,655 4,267,356Prepayments and other current assets (51,262,076) 2,970,950 5,021,991Increase (decrease) in:Accounts payable and accrued expenses 264,264,524 (26,287,053) 57,175,330Other current liabilities 61,510,778 418,348 41,031,990Deposits payable (15,400,829) 42,905,608 2,500,799Net retirement obligations 5,712,335 3,226,561 4,187,942Deferred revenue 7,827,381 – –Cash generated from operations 539,449,292 296,207,841 388,774,670Income taxes paid (39,567,887) (30,940,362) (32,462,976)Interest received 2,180,738 928,110 1,847,906Net cash from operating activities 502,062,143 266,195,589 358,159,600(Forward)