Statements of Consolidated Cash Flows
Automatic Data Processing, Inc. and Subsidiaries

(In thousands)

Years ended June 30,	1997	1996	1995
Cash Flows From Operating Activities
Net earnings	$513,500	$454,700	$394,830
Depreciation and amortization	223,435	201,629	172,536
Deferred income taxes	-35,291	13,940	-11,050
Changes in operating assets and liabilities:
Receivables and other assets	-108,786	-46,321	-89,131
Accounts payable and accrued expenses	48,263	-36,175	-1,975
Other	77,938	86,494	28,247
Net cash flows from operating activities	719,059	674,267	493,457
Cash Flows From Investing Activities
Purchase of marketable securities	-1,395,210	-1,014,244	-1,080,989
Proceeds from sale of marketable securities	1,362,061	1,208,317	926,276
Capital expenditures	-175,289	-163,525	-117,698
Additions to intangibles	-15,292	-111,054	-38,612
Acquisitions of businesses, net of cash acquired	-115,438	-472,783	-107,457
Other	39,683	5,563	3,756
Net cash flows from investing activities	-299,485	-547,726	-414,724
Cash Flows From Financing Activities
Proceeds from issuance of notes	45,395	90,746	--
Proceeds from issuance of common stock	71,263	125,617	99,412
Repurchases of common stock	-127,709	-245,224	-13,146
Dividends paid	-129,814	-112,116	-89,224
Other	-2,547	15,240	-789
Net cash flows from financing activities	-143,412	-125,737	-3,747
Net change in cash and cash equivalents	276,162	804	74,986
Cash and cash equivalents, at beginning of period	314,416	313,612	238,626
Cash and cash equivalents, at end of period	$590,578	$314,416	$313,612

See notes to consolidated financial statements.