audited financial statements Statement of Cash Flows General Electric Company and consolidated affi liates For the years ended December 31 (In millions) 2006 2005 2004 CASH FLOWS — OPERATING ACTIVITIES Net earnings $ 20,829 $ 16,711 $ 17,160 Loss (earnings) from discontinued operations (163) 1,950 (559) Adjustments to reconcile net earnings to cash provided from operating activities Depreciation and amortization of property, plant and equipment 9,158 8,537 8,348 Net earnings retained by GECS — — — Deferred income taxes 1,950 (940) 51 Decrease (increase) in GE current receivables (2,152) (974) (1,617) Decrease (increase) in inventories (1,779) (578) (468) Increase (decrease) in accounts payable (119) 245 3,756 Increase (decrease) in GE progress collections 926 510 (464) Provision for losses on GECS financing receivables 3,839 3,841 3,888 All other operating activities 530 3,362 777 Cash from operating activities — continuing operations 33,019 32,664 30,872 Cash from (used for) operating activities — discontinued operations (2,373) 5,027 5,621 CASH FROM OPERATING ACTIVITIES 30,646 37,691 36,493 CASH FLOWS — INVESTING ACTIVITIES Additions to property, plant and equipment (16,650) (14,381) (12,936) Dispositions of property, plant and equipment 6,799 6,027 5,839 Net increase in GECS financing receivables (38,134) (16,400) (14,668) Proceeds from sales of discontinued operations 9,022 8,106 3,437 Proceeds from principal business dispositions 3,870 481 1,179 Payments for principal businesses purchased (11,652) (11,498) (18,703) All other investing activities (4,274) (1,701) 5,080 Cash used for investing activities — continuing operations (51,019) (29,366) (30,772) Cash used for investing activities — discontinued operations (383) (5,733) (7,651) CASH USED FOR INVESTING ACTIVITIES (51,402) (35,099) (38,423) CASH FLOWS — FINANCING ACTIVITIES Net increase (decrease) in borrowings (maturities of 90 days or less) 4,582 (4,600) (1,558) Newly issued debt (maturities longer than 90 days) 88,362 66,523 58,538 Repayments and other reductions (maturities longer than 90 days) (49,346) (53,133) (47,106) Net dispositions (purchases) of GE shares for treasury (8,554) (4,844) 3,993 Dividends paid to shareowners (10,420) (9,352) (8,278) All other financing activities (1,174) (1,128) (3,304) Cash from (used for) financing activities — continuing operations 23,450 (6,534) 2,285 Cash from (used for) financing activities — discontinued operations (220) 415 2,309 CASH FROM (USED FOR) FINANCING ACTIVITIES 23,230 (6,119) 4,594 INCREASE (DECREASE) IN CASH AND EQUIVALENTS DURING YEAR 2,474 (3,527) 2,664 Cash and equivalents at beginning of year 11,801 15,328 12,664 Cash and equivalents at end of year 14,275 11,801 15,328 Less cash and equivalents of discontinued operations at end of year — 2,976 3,267 Cash and equivalents of continuing operations at end of year $ 14,275 $ 8,825 $ 12,061 SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION Cash paid during the year for interest $(18,254) $(16,446) $(11,907) Cash recovered (paid) during the year for income taxes (2,869) (3,254) (1,339) The notes to consolidated financial statements are an integral part of this statement. 72 ge 2006 annual report

statement of cash flows 2006 GE 2005 2004 2006 GECS 2005 2004 $ 20,829 — $ 16,711 — $ 17,160 — $ 10,658 (163) $ 7,577 1,950 $ 8,728 (559) 2,624 (811) 842 813 (1,756) 392 926 — 768 24,627 — 24,627 2,501 239 (287) (266) (608) 983 510 — 1,826 21,609 — 21,609 2,533 (5,623) (175) (908) (459) 1,888 (464) — 1,252 15,204 — 15,204 6,534 — 1,108 — (23) (1) — 3,839 (41) 21,911 (2,373) 19,538 6,036 — (653) — 30 (397) — 3,841 1,403 19,787 5,027 24,814 5,815 — 226 — (9) 2,593 — 3,888 (167) 20,515 5,621 26,136 (3,637) — — — 3,484 (4,353) (11) (4,517) — (4,517) (2,812) — — — 272 (4,331) 430 (6,441) — (6,441) (2,427) — — — 707 (4,815) (75) (6,610) — (6,610) (13,184) 6,799 (41,046) 9,022 386 (7,299) (5,555) (50,877) (383) (51,260) (11,629) 6,027 (16,954) 8,106 209 (7,167) (2,706) (24,114) (5,733) (29,847) (10,665) 5,839 (15,280) 3,437 472 (13,888) 4,156 (25,929) (7,651) (33,580) 1,292 130 (93) (8,554) (10,420) — (17,645) — (17,645) (392) 1,704 (3,424) (4,844) (9,352) — (16,308) — (16,308) (1,690) 434 (1,568) 3,993 (8,278) — (7,109) — (7,109) 6,461 88,278 (49,253) — (9,847) (1,174) 34,465 (220) 34,245 (4,044) 65,054 (49,709) — (7,816) (1,128) 2,357 415 2,772 33 58,143 (45,538) — (3,105) (3,304) 6,229 2,309 8,538 2,465 2,015 4,480 — $ 4,480 (1,140) 3,155 2,015 — $ 2,015 1,485 1,670 3,155 — $ 3,155 2,523 10,106 12,629 — $ 12,629 (2,261) 12,367 10,106 2,976 $ 7,130 1,094 11,273 12,367 3,267 $ 9,100 $ (1,159) (2,203) $ (928) (1,829) $ (603) (2,261) $(17,095) (666) $(15,518) (1,425) $(11,304) 922 In the consolidating data on this page, “GE” means the basis of consolidation as described in note 1 to the consolidated financial statements “GECS” means General Electric Capital Services, Inc. and all of its affiliates and associated companies. Transactions between GE and GECS have been eliminated from the “General Electric Company and consolidated affiliates” columns. ge 2006 annual report 73