The statement of cash flows for Yahoo! is reproduced here:

Required:
a. Yahoo!'s operations did not produce significant cash flows during Year 6 and Year 7. How does Yahoo! finance its growth in the absence of sufficient operating cash flows?
b. What appears to drive the operating cash flows of Yahoo!?
c. Yahoo! engages in purchases and sales of marketable securities. Why do you believe Yahoo! pursues this activity?
d. Yahoo! reports $33.21 million of deferred revenue. Based on your understanding of Yahoo!'s operations, what do you believe this amountrepresents?

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YAHOO! INC. Consolidated Statements of Cash Flows YEAR ENDED DECEMBER 31 in thousands) Year 8 Year 7 Year 6 Cash flows from operating activities 25,588 $(25,520) (6,427) Net income (loss) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities Depreciation and amortization Tax benefits from stock options Noncash charges related to stock option grants and 10,215 17.827 2,737 1,676 (727) 21,245 warrant issuances Minority interests in operations of consolidated 197 subsidiaries Purchased in-process research and development Other noncash charge (68) 17,300 (540) Changes in assets and liabilities Accounts receivable, net. Prepaid expenses Accounts payable 2,144 515 Accrued expenses and other current liabilities..16,688 33,210 (451) $ (13,616) $(5,963) S(4,269) (386) 1,386 4,393 (6,110) 2.425 7,404 2,983 Deferred revenue Due to related parties 948 (2,394) Net cash provided by (used in) operating activities 110,278 480 Cash flows from investing activities (11,911) (6,722) Acquisition of property and equipment Cash acquired in acquisitions Purchases of marketable securities Proceeds from sales and maturities of marketable (3,442) .(471,135) (58,753 (115,247) securities... Other investments. 86,678 (5,445) (1,649) : 158,350 43,240 (329,942) 19,554 Net cash provided by (used in) investing activities Cash flows from financing activities (76,178) 42,484 63,750 Proceeds from issuance of common stock, net Proceeds from issuance of convertible preferred stock Proceeds from minority investors Other .280,679 7,516 (128) 107,156 288 (380)(63) 61,903 29,275 28,521 5,775 $125,474 63,57 34,296 1,106H 9,621 Net cash provided by financing activities Effect of exchange rate changes on cash and cash 281.279 equivalents Net change in cash and cash equivalents.. Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 63,571 34,296