CE SOFTWARE, INC.
Pro Forma Statement of Cash Flows
Years ended September 30, 2004 and 2003
(Unaudited)

 

2004

2003

Cash flows from operating activities:

 

 

   Net loss

$  (63,143)

$ (239,715)

   Adjustments to reconcile net loss to
      net cash used in operating activities:
      Depreciation and amortization
         Property, fixtures, and equipment

9,021

77,900

         Purchased software

10,932

58,273

      Gain on sale of investments

(603)

-

      Gain on sale of assets (note 1)

(187,041)

(131,798)

      Decrease in trade accounts receivable

67,877

105,072

      Decrease in inventories

6,424

13,589

      Decrease in other current assets and other assets

38,052

38,114

      Increase (decrease) in accounts payable and accrued expenses

5,385

(85,033)

      (Decrease) increase in deferred revenue

   (2,400)

    3,859

         Net cash used in operating activities

(115,496)

(159,739)

 
Cash flows from investing activities:    
   Purchase of equipment

-

(3,703)

   Proceeds from sale of assets (note 1)

173,758

1,000,000

   Increase in contract receivable (note 2)

(43,758)

-

   Purchase of investments

(270,014)

-

   Proceeds from sale of investments

252,437

-

   Proceeds from exercise of stock options

6,644

-

   Redemption of fractional shares

         -

   (1,671)

      Net cash provided by investing activities

  119,067

  994,626

     
Cash flows from financing activities:    
   Payments of long-term debt

        -

  (474,649)

      Net cash used in financing activities

        -

  (474,649)

         Net increase in cash and cash equivalents

3,571

360,238

Cash and cash equivalents at beginning of period

 541,137

  180,899

Cash and cash equivalents at end of period

$ 544,708
=======

$ 541,137
=======

     
Supplemental disclosures of cash flow information:
   Cash paid during the period for interest

$   194
======

$ 63,691
======

   Taxes paid

$   224
======

$      -
======

Note 1: Sale of real property in September 2003, QuickMail software product in December 2003, and remaining software products and equipment in April 2004.
Note 2: Receivable on sales of software products and equipment.

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