Statements of Consolidated Cash Flows

Automatic Data Processing, Inc. and Subsidiaries

(In thousands)


Year ended June 30,                          1995         1994         1993

Cash Flows From Operating Activities                                
Net earnings                             $394,830     $329,320     $294,200
Depreciation and amortization             172,536      148,295      140,234
Deferred income taxes                    (11,050)      (3,200)       12,000
Changes in operating assets and                                            
liabilities:
  Receivables and other assets           (89,131)     (28,922)     (58,702)
  Accounts payable and accrued            (1,975)       17,105       53,782
expenses
  Other                                    13,575       46,530     (50,132)
    Net cash flows                                                         
     from operating activities            478,785      509,128      391,382
                                                                           

Cash Flows From Investing Activities                                  
Marketable securities                   (154,713)    (117,914)    (268,314)
Capital expenditures                    (117,698)    (110,733)     (87,411)
Other changes to property,                                                 
  plant and equipment                       3,756       12,822        6,122
Additions to intangibles                 (38,612)     (24,460)     (24,889)
Acquisitions of businesses              (107,457)     (81,082)     (56,918)
    Net cash flows from                                                    
      investing activities              (414,724)    (321,367)    (431,410)
                                                                           

Cash Flows From Financing Activities                                 
Repayments of long-term debt              (6,217)      (1,702)      (8,979)
Proceeds from issuance of common           99,412       77,981       72,838
stock
Repurchases of common stock              (13,146)    (129,389)     (82,510)
Dividends paid                           (89,224)     (76,031)     (67,184)
Other                                      20,100        (796)        2,644
    Net cash flows from                                                    
      financing activities                 10,925    (129,937)     (83,191)
                                                                           
                                                                           
Net change in cash and cash                74,986       57,824    (123,219)
equivalents
Cash and cash equivalents,                                                 
  at beginning of period                  238,626      180,802      304,021
Cash and cash equivalents,                                                 
  at end of period                       $313,612     $238,626     $180,802

See notes to consolidated financial statements.