CE SOFTWARE, INC.
Pro Forma Statement of Cash Flows
Years ended September 30, 2005 and 2004
(Unaudited)

 

2005

2004

Cash flows from operating activities:

 

 

   Net loss

$ (160,129)

$  (63,143)

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

-

9,021

         Purchased software

-

10,932

      Loss (gain) on sale of investments

3,455

(603)

      Gain on sale of assets (note 1)

-

(187,041)

      Decrease in trade accounts receivable

3,877

67,877

      Decrease in inventories

-

6,424

      Decrease in other current assets and other assets

5,013

38,052

      (Decrease) increase in accounts payable and accrued expenses

(26,230)

5,385

      Decrease in deferred revenue

        -

   (2,400)

         Net cash used in operating activities

(174,014)

(115,496)

 
Cash flows from investing activities:    
   Proceeds from sale of assets (note 1)

-

173,758

   Increase in contract receivable (note 2)

-

(43,758)

   Purchase of investments

-

(270,014)

   Proceeds from sale of investments

14,725

252,437

   Proceeds from exercise of stock options

         -

      6,644

      Net cash provided by investing activities

    14,725

   119,067

         Net (decrease) increase in cash and cash equivalents

(159,289)

3,571

Cash and cash equivalents at beginning of period

 544,708

 541,137

Cash and cash equivalents at end of period

$ 385,419
=======

$ 544,708
=======

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

$      -
======

$    194
======

   Taxes paid

$      -
======

$    224
======

Note 1: Sale of QuickMail software product in December 2003, and remaining software products and equipment in April 2004.
Note 2: Receivable on balance of pro forma contract sale of software products and equipment.

Press Release        Balance Sheets        Statements of Operations        Statements of Stockholders' Equity        Statement of Cash Flow