Budget and Finance

2008 2007

RECONCILIATION OF NET OPERATING LOSS TO

NET CASH USED FOR OPERATING ACTIVITIES:

Operating loss $ (334,499) $ (357,094)

Adjustments to reconcile operating loss to net cash

used for operating activities:

Depreciation expense 87,765 87,360

Loss (gain) on disposal of capital assets 1,136 (1,659)

Changes in assets and liabilities:

Receivables, net (9,904) (2,405)

Inventories (195) (2,052)

Other assets 16,035 549

Accounts payable and accrued liabilities (3,402) 26,378

Deferred revenue 7,334 4,395

Compensated absences (1,244) (1,913)

Deposits 6,528 (1,316)

Net cash used for operating activities $ (230,446) $ (247,757)

Non cash transactions:

Capital asset acquired by incurring note payable $ - 2,800$

Accrued liabilities for construction in progress 7,549 7,996

University of Cincinnati

Statements of Cash Flows - continued

Years Ended June 30, 2008 and 2007

(in thousands)

See accompanying notes to financial statements.^18