Create a Cash Flow Summary for Applied Materials' Statement of Cash Flows,

Note that AMAT's statement has a lot more stuff in it than the Exhibit. That's ok$,$ that's how the real world works. We want all the

cash inflows on top and all the cash outflows on the bottom, no matter what their name.

Cash from Operations is a single line in the Summary sheet. You don't need to do anything with all the various lines in the

Operating section here.

There are a few of combinations I want you to make. Leaving them out in their gross form gives an unrealistic impression of how

AMAT is getting$/$using cash:

AMAT rolls investments over as they come due, so they're not really receiving cash from sales and using cash on purchases in the

traditional sense. Please combine the Proceeds from Sales and Maturities of Investments with Purchases of Investments into a single

line item, "Net Purchases of Investments." This belongs in the cash outflow section and will show whether they have decided to

increase their investment portfolio through additional purchases or decrease their portfolio by selling investments off.

Please also combine the two Commercial Paper items into a single line. For purposes of this worksheet, they didn't 'get cash' through

commercial paper and then 'use cash' paying it off. It was just a wash.

The Tax Withholding payments and Lease payments need to go on the statement, but feel free to ignore them from an analysis

standpoint. They're both niche and immaterial.