Avnet is one of the world's largest value-added distributors of electronic components, enterprise computer and storage products, IT services and embedded subsystems. Avnet creates a vital link in the technology supply chain that connects the world's leading electronic component and computer product manufacturers and software developers with a global customer base of original equipment manufacturers, electronic manufacturing services providers, original design manufacturers, and value-added resellers.

Required:
(a) Using the Consolidated Statements of Cash Flows for Avnet, prepare a summary analysis for all three years.
(b) Write an analysis and interpretation of the cash flows for Avnet for all three years. Be sure to analyze the cash flows from operating activities, as well as the overall cash inflows and outflows for the firm.
(c) Evaluate the creditworthiness of Avnet based on only the cash flow statements.
(d) What information from the balance sheet would be useful to a creditor in determining whether to loan Avnet money?

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Avnet, Inc. and Subsidiaries Consolidated Statements of Cash Flows Years Ended June 29 une 30 Cash flows from operating activities: Net income $ 450,073 $567,019 $ 669,069 Non-cash and other reconciling items: Depreciation and amortization Deferred income taxes (Note 9) Stock-based compensation (Note 12) 120,676 (10,019) 43,677 (31,011) 75,327 11,782 35,737 (2,918) 66,263 81,389 15,966 28,931 (22,715) 56,846 in on bargain purchase and other (Note ) Other, net (Note 15) Changes in (net of effects from businesses acquired): (94,203) 225,667 (78,834) (5,156 (136,852 Receivables (421,457) (321,939) 165,185 26,804 133,178 (319,094) Accounts pavable expenses and other, net Net cash flows provided by operating activities 696,197 278,079 Cash flows from financing activities: (Repayments of) borrowings under accounts receivable securitization program, net (Note 3 Issuance of notes in a public offering, net of issuance costs (Note 7) Repayment of notes (Note 7) (Repayments of) proceeds from bank debt, net (Note 7) (310,000) 510,000 349,258 (109,600) (179,861) 86,823 (Repayments of) p net (Note 7) Repurchases of common stock (Note 4) Other, net (Note 12) (1,080) (207,192) 4,792 (1,007) (318,333) 7,238 Net cash flows (used for) provided by financing activities (344,083) 283,073 63,212 Cash flows from investing activities: of property, plant and equipment (148,707) 10,621 (690,997) 19,108 (353,054 (440,824 (809 975) 51,916 (416,768) $ 675,334 (97,379) 128,652) Cash proceeds from sales of property, plant, and equipment Acquisitions of operations and investments, net of cash acquired (Note 2) Cash proceeds from divestiture activities Note 2) 3,018 (262,306) (313,218) Net cash flows used for investing Effect of exchange rate changes on cash and cash equivalents Cash and cash equivalents: _ increase (decrease) 3,419 2,479 $1,009 343 (39,437) 331,530 $1,006,864 at beginning of year - at end of year