5-48 Statement of Cash Flows, Effect of Exchange Rates, Japan Kansai Electric supplies power to an area of Japan that includes Osaka and Kyoto. Its operating revenues are nearly 2.8 trillion (about $33 billion in U.S. dollars), and its assets are more than 7.3 trillion. The bottom of Kansai Electric's 2011 cash flow statement contained the following (in millions of Japanese yen, ): Net cash provided by operating, investing, and financing activities Effect of exchange rate changes on cash and cash equivalents Net increase in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year 18,228 (303) 17,925 77,525 95,450 Is the effect of exchange rate changes on cash and cash equivalents a cash flow? Explain why Kansai Electric included it on the company's cash flow statement. 5.40 Cach Flows from Financing Activities OBJECTIVE 2