s t a t e m e n t s   o f
c o n s o l i d a t e d   c a s h   f l o w s

(In millions)                                 Motorola, Inc. and Consolidated Subsidiaries
------------------------------------------------------------------------------------------
Years ended December 31                                1996           1995            1994
------------------------------------------------------------------------------------------
Operating
Net earnings                                         $1,154         $1,781          $1,560
Add (deduct) non-cash items
  Depreciation                                        2,308          1,919           1,525
  Deferred income taxes                               (160)           (55)           (177)
  Amortization of debt discount and issue costs           8             12              22
Gain on disposition of investments in
    affiliated companies                               (78)          (111)             (9)
Change in assets and liabilities, net of 
    effects of acquisitions and dispositions
  Accounts receivable, net                              101          (653)           (945)
  Inventories                                           308          (856)           (806)
  Other current assets                                 (69)          (100)           (328)
  Accounts payable and accrued liabilities              398          1,172           1,134
  Other assets                                           14              8             554
  Other liabilities                                     206            148            (19)
------------------------------------------------------------------------------------------
Net cash provided by operations                       4,190          3,265           2,511
------------------------------------------------------------------------------------------
Investing
Acquisitions and advances to affiliated companies     (346)          (563)           (894)
Dispositions of investments in affiliated companies     119            252              23
Payments for property, plant and equipment          (2,973)        (4,225)         (3,320)
Other changes to property, plant and equipment, net     242           (11)             183
(Increase) decrease in short-term investments            52           (32)              40
------------------------------------------------------------------------------------------
Net cash used for investing activities              (2,906)        (4,579)         (3,968)
------------------------------------------------------------------------------------------
Financing
Net increase (decrease) in commercial paper
    and short-term borrowings less than 90 days       (260)            686             517
Proceeds from issuance of debt                           55            851              32
Repayment of debt                                      (37)           (74)           (190)
Issuance of common stock                                  7             71           1,102
Payment of dividends                                  (261)          (236)           (149)
------------------------------------------------------------------------------------------
Net cash provided by (used for) 
    financing activities                              (496)          1,298           1,312
------------------------------------------------------------------------------------------
Net increase (decrease) in cash and 
    cash equivalents                                   $788          $(16)          $(145)
------------------------------------------------------------------------------------------
Cash and cash equivalents, beginning of year           $725           $741            $886
------------------------------------------------------------------------------------------
Cash and cash equivalents, end of year               $1,513           $725            $741
------------------------------------------------------------------------------------------


Supplemental Cash Flow Information (In millions) Motorola, Inc. and Consolidated Subsidiaries ------------------------------------------------------------------------------------------ Years ended December 31 1996 1995 1994 ------------------------------------------------------------------------------------------ Non-Cash Activities Conversion of zero coupon notes $7 $23 $251 Unrealized net gain (loss) on certain investments $(86) $336 $(8) ------------------------------------------------------------------------------------------

See accompanying condensed notes to consolidated financial statements.


Previous page || Table of Contents || Next Page
Financial highlights || To our stockholders and other friends || Motorola at a glance || Condensed consolidated financial statements || Condensed notes to consolidated financial statements || Five year financial summary || Directors and management board of Motorola, Inc. || CEO quality awards and Dan Noble fellows || Stockholder reference information