Consolidated Statements of Cash Flows in thousands, except per share data POLARIS INDUSTRIES INC.
For the Years Ended December 31,
	1997	1996	1995
Cash Flows From Operating Activities
Net income	$ 65,383	$ 62,293	$ 60,776
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	33,168	31,053	23,223
Noncash compensation	5,010	4,550	4,753
Equity in (income) loss of affiliates	(6,718)	(3,107)	243
Deferred income taxes	–	–	10,000
Changes in current operating items
Trade receivables	(6,435)	4,244	(10,702)
Inventories	(16,633)	(18,278)	(15,919)
Accounts payable	10,513	(6,874)	(1,544)
Accrued expenses	11,551	16,568	11,114
Income taxes payable	7,660	(4,029)	(2,569)
Other	(1,191)	3,161	(1,626)
Net cash provided by operating activities	102,308	89,581	77,749
Cash Flows From Investing Activities
Purchase of property and equipment	(36,798)	(45,336)	(47,154)
Investments in and advances to affiliates	(16,627)	(10,998)	(800)
Distributions and repayments from affiliates	13,999	4,241	–
Net cash used for investing activities	(39,426)	(52,093)	(47,954)
Cash Flows From Financing Activities
Borrowings under credit agreement	290,100	276,900	249,700
Repayments under credit agreement	(300,700)	(282,100)	(209,500)
Repurchase and retirement of common shares	(39,903)	(13,587)	–
Cash dividends to shareholders	(16,958)	(16,390)	(116,639)
Cash distributions to partners	–	–	(12,736)
Net cash used for financing activities	(67,461)	(35,177)	(89,175)
Increase (decrease) in cash and cash equivalents	(4,579)	2,311	(59,380)
Cash and Cash Equivalents
Beginning	5,812	3,501	62,881
Ending	$ 1,233	$ 5,812	$ 3,501
Supplemental Cash Flow Information
Interest paid during the year	$ 25,838	$ 31,673	$ 24,341
Income taxes paid during the year	$ 29,007	$ 39,069	$ 31,183
*The accompanying notes are an integral part of these consolidated statements.