The Apollo Group is one of the largest providers of private education and runs numerous programs and services, including the University of Phoenix. Exhibit 3.23 provides statements of cash flows for 2010 through 2012.

Exhibit 3.23

REQUIRED
Discuss the relations between net income and cash flow from operations and among cash flows from operating, investing, and financing activities for the firm, especially for 2012. Identify signals that might raise concerns for an analyst.

Transcribed Image Text:

Exhibit 3.23 (Continued) Cash flows provided by (used in) investing activities: Additions to property and equipment Acquisitions, net of cash acquired (115,187) (73,736) (162,573) (168,177) (5,497) Maturities of marketable securities 10,000 5,000 Proceeds from sale-leaseback, net 169,018 Proceeds from dispositions, net 76,434 21,251 Collateralization of letter of credit 126,615 (126,615) Other investing activities Net cash (used in) provided by investing activities Cash flows provided by (used in) financing activities: Payments on borrowings Proceeds from borrowings Apollo Group Class A common stock purchased for treasury Issuance of Apollo Group Class A common stock Noncontrolling interest contributions Excess tax benefits from share-based compensation Net cash used in financing activities Exchange rate effect on cash and cash equivalents Net (decrease) increase in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year (1,694) (114,183) 164,311 (295,289) (562,269) (437,925) (477,568) 629,145 410,051 475,454 (811,913) (783,168) (446,398) 11,949 24,903 19,671 6,875 2,460 1,150 4,014 6,648 (731,938) (775,250) (419,733) (1,697) 316,523 (468) 712 (295,289) 286,895 1,571,664 1,284,769 $1,571,664 968,246 $1,284,769 $1,276,375