441 ENRON CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS Year ended December 31, (In millions) 2000 1999 1998 Cash Flows From Operating Activities Net income $ 979 $ 893 $ 703 Cumulative effect of accounting changes 131 Depreciation, depletion and amortization 855 870 827 Impairment of long-lived assets (including equity investments) 326 Deferred income taxes 207 87 Gains on sales of non-merchant assets (146) (541) (82) Changes in components of working capital 1,769 (1,000) (233) Net assets from price risk management activities (763) (395) 350 Merchant assets and investments: Realized gains on sales (104) (756) (628) Proceeds from sales 1,838 2,217 1,434 Additions and unrealized gains (1,295) (827) (721) Other operating activities 1,113 174 (97) Net Cash Provided by Operating Activities 4,779 1,228 1,640 21 Cash Flows From Investing Activities Capital expenditures Equity investments Proceeds from sales of non-merchant assets Acquisition of subsidiary stock Business acquisitions, net of cash acquired Other investing activities Net Cash Used in Investing Activities (2,381) (933) 494 (485) (2,363) (722) 294 (1,905) (1,659) 239 (180) (182) (405) (3,507) (356) (3,965) (4,264) ... continued... 855 ENRON CORP. AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENT Year ended December 31, (In millions, except per share amounts) 2000 1999 1998 Revenues Natural gas and other products $ 50,500 $19,536 $13,276 Electricity 33,823 15,238 13,939 Metals 9,234 Other 7,232 5,338 4,045 Total revenues 100,789 40,112 31,260 Costs and Expenses Cost of gas, electricity, metals and other products 94,517 34,761 26,381 Operating expenses 3,184 3,045 2,473 Depreciation, depletion and amortization 870 827 Taxes, other than income taxes 280 193 201 Impairment of long-lived assets 441 Total costs and expenses 98,836 39,310 29,882 Operating Income 1,953 802 1,378 Other Income and Deductions Equity in earnings of unconsolidated equity affiliates 97 Gains on sales of non-merchant assets 541 Gain on the issuance of stock by TNPC, Inc. 121 Interest income 162 Other income, net (37) 181 Income Before Interest, Minority Interests and Income Taxes 2,482 1,995 1,582 Interest and related charges, net 656 550 Dividends on company-obligated preferred securities of subsidiaries 77 77 Minority interests 154 77 Income tax expense 434 104 175 Net income before cumulative effect of accounting changes 979 1,024 703 Cumulative effect of accounting changes, net of tax (131) Net Income 979 893 703 87 309 146 212 (37) 838 76 135 ...continued... 3,994 (2,337) (1,595) 1,776 (1,837) 1,565 1,903 (870) (158) (96) 307 852 500 867 828 (414) (523) Cash Flows From Financing Activities Issuance of long-term debt Repayment of long-term debt Net increase (decrease) in short-term borrowings Net issuance (redemption of company-obligated preferred securities of subsidiaries Issuance of common stock Issuance of subsidiary equity Dividends paid Net disposition of treasury stock Other financing activities Net Cash Provided by Financing Activities Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents, Beginning of Year Cash and Cash Equivalents, End of Year Changes in components of Working Capital Receivables Inventories 327 13 568 (467) 139 (140) 2,456 177 (6) 571 1,086 288 $ 1,374 89 2,266 (59) 170 111 111 $ 288 $ Payables $(8,203) 1,336 7,167 1,469 $ 1,769 $ (662) (133) (246) 41 $(1,000) $(1,055) (372) 433 761 $ (233) Other Total ENRON CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET December 31, 2000 1999 $ 1,374 $ 288 (In millions) ASSETS Current Assets Cash and cash equivalents Trade receivables (net of allowance for doubtful accounts of $133 and $40, respectively) Other receivables Assets from price risk management activities Inventories Deposits Other 10,396 1,874 3,030 518 12,018 953 2,433 1,333 30,381 2,205 598 81 535 Total current assets 7,255 5,294 5,036 Investments and Other Assets Investments in and advances to unconsolidated equity affiliates Assets from price risk management activities Goodwill Other Total investments and other assets 8,988 3,638 5,459 23,379 2,929 2,799 4,681 15,445 Property, plant and Equipment, at cost Natural gas transmission Electric generation and distribution Fiber optic network and equipment Construction in progress Other 6,916 4,766 839 682 2,256 15,459 6,948 3,552 379 1,120 1,913 13,912 Less accumulated depreciation, depletion and amortization Property, plant and equipment, net 3,716 11, 743 3,231 10,681 Total Assets $65,503 $33,381 ENRON CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET December 31, 2000 1999 $ 9,777 $ 2,154 1,836 1,001 44 10,495 1,679 4,277 2,178 28,406 8,550 1,724 6,759 7,151 1,644 1,894 9,423 2,692 2,990 1,587 13,759 6,471 (In millions, except shares) LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts payable Liabilities from price risk management activities Short-term debt Customers' deposits Other Total current liabilities Long-Term Debt Deferred Credits and Other Liabilities Deferred income taxes Liabilities from price risk management activities Other Total deferred credits and other liabilities Commitments and Contingencies Minority Interests Company-Obligated Preferred Securities of Subsidiaries Shareholders' Equity Second preferred stock, cumulative, no par value, 1,370,000 shares authorized, 1,240,933 shares and 1,296,184 shares issued, respectively Mandatorily Convertible Junior Preferred Stock, Series B, no par value, 250,000 shares issued Common stock, no par value, 1,200,000,000 shares authorized, 752,205, 112 shares and 716,865,081 shares issued, respectively Retained earnings Accumulated other comprehensive income Common stock held in treasury, 577,066 shares and 1,337,714 shares, 2,414 2,430 904 1,000 124 130 1,000 1,000 8,348 3,226 (1,048) 6,637 2,698 (741) respectively Restricted stock and other Total shareholders' equity Total Liabilities and Shareholders' Equity (32) (148) 11,470 $65,503 (49) (105) 9,570 $33,381 1. What was the percent growth in revenue from 1999 to 2000? 2. What was the percent growth in operating expenses from 1999 to 2000? 3. What was the percent growth in net income from 1999 to 2000? 4. Cash from operating activities grew from 1999 to 2000. What category accounted for the biggest increase? 5. What two line items contributed to the biggest increase in working capital from 1999 to 2000? You can look at the balance sheet or at the end of the cash flows for this information. 6. Which two types of revenue had the biggest (dollar, not percent) increase from 1999 to 2000? What was their percent increase? 7. How much did the related PPE items increase (in percent terms) from 1999 to 2000