Statements of Consolidated Cash Flows

Automatic Data Processing, Inc. and Subsidiaries
(In thousands)

Year ended June 30,	1996	1995	1994
Cash Flows From Operating Activities
Net earnings	$454,700	$394,830	$329,320
Depreciation and amortization	201,629	172,536	148,295
Deferred income taxes	13,940	(11,050)	(3,200)
Changes in operating assets and liabilities:
Receivables and other assets	22,659	(89,131)	(28,922)
Accounts payable and accrued expenses	(36,175)	(1,975)	17,105
Other	(12,699)	13,575	46,530
Net cash flows from operating activities	644,054	478,785	509,128
Cash Flows From Investing Activities
Purchase of marketable securities	(1,014,244)	(1,080,989)	(953,4940
Proceeds from sale of maketable securities	1,208,317	926,276	835,580
Capital expenditures	(163,525)	(117,698)	(110,733)
Other changes in property, plant and equipment	5,563	3,756	12,822
Additions to intangibles	(111,054)	(38,612)	(24,460)
Acquisitions of businesses, net of cash acquired	(472,783)	(107,457)	(81,082)
Net cash flows from investing activities	(547,726)	(414,724)	(321,367)
Cash Flows From Financing Activities
Proceeds from issuance of notes	90,746
Repayments of long-term debt	(21,009)	(6,217)	(1,702)
Proceeds from issuance of common stock	125,617	99,412	77,981
Repurchases of common stock	(245,224)	(13,146)	(129,389)
Dividends paid	(112,116)	(89,224)	(76,031)
Other	66,462	20,100	(7960
Net cash flows from financing activities	(95,524)	10,925	(129,937)
Net change in cash and cash equivalents	804	74,986	57,824
Cash and cash equivalents, at beginning of period	313,612	238,626	180,802
Cash and cash equivalents, at end of period	$314,416	$313,612	$238,626

See notes to consolidated financial statements