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KIMLEY‐HORN AND ASSOCIATES, INC.  <br />STATEMENTS OF CASH FLOWS  <br />  <br />  <br />YEARS ENDED DECEMBER 31, 2016 AND 2015  <br />(SEE INDEPENDENT ACCOUNTANT’S REVIEW REPORT)  <br />  <br />  <br />The accompanying notes to the financial statements are an integral part of these statements. 6 <br />2016 2015 <br />Cash flows from operating activities: <br />Net earnings 12,940,019$ 9,426,266$ <br />Adjustments to reconcile net earnings to net cash provided <br />by operating activities: <br />Depreciation and amortization 7,282,020 6,982,508 <br />Deferred income (160,256) (142,256) <br />Deferred income taxes (11,455,956) 522,402 <br />(Gain)/Loss on disposal of properties and equipment (422,646) 303,302 <br />(Gain) on sales of marketable securities (349,076) (63,279) <br />Allowance for uncollectible accounts (170,000) 530,000 <br />Allowance, net of recovery, for uncollectible notes receivable 194,740 60,500 <br />Changes in assets and liabilities: <br />Accounts receivable – trade (11,806,320) (27,677,308) <br />Costs and estimated earnings in excess <br />of billings on uncompleted contracts (3,246,046) (1,837,833) <br />Accounts receivable – other (183,905) (429,884) <br />Receivable from affiliates (919,945) (732,642) <br />Prepaid expenses (7,494,607) (396,122) <br />Deposits and other assets (295,625) (710,464) <br />Income taxes receivable 1,569,332 (1,569,332) <br />Tax liability due to affiliates 157,381 397,250 <br />Accounts payable – trade 10,951,289 6,738,173 <br />Billings in excess of costs and estimated <br />earnings on uncompleted contracts 4,474,527 8,268,293 <br />Payable to affiliate - 25,844 <br />Accrued compensation and expenses 36,827,393 24,833,656 <br />Income taxes payable 786,378 (892,560) <br />Other long-term liabilities (38,388) (79,940) <br />Net cash provided by operating activities 38,640,309 23,556,574 <br />Cash flows from investing activities: <br />Purchases of properties and equipment (8,723,438) (8,967,405) <br />Proceeds from disposition of properties and equipment 639,632 400,029 <br />Purchases of marketable securities, held to maturity (49,442,886) (10,000,000) <br />Issuance of notes receivable (324,140) (210,500) <br />Collections of notes receivable 118,324 118,481 <br />Business combination (275,000) - <br />Net cash used in investing activities (58,007,508) (18,659,395)