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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d) of
the Securities Exchange Act of 1934
For Quarter Ended June 30, 1995 Commission file number 0-15363
COMMONWEALTH GROWTH FUND II
(Exact Name of Registrant as Specified in its Charter)
California 68-0088748
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
705 University Avenue, Suite A, Sacramento, California 95825
(Address of registrant's principal executive offices) (Zip Code)
(916) 929-5433
(Registrants telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
X Yes ____ No
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COMMONWEALTH GROWTH FUND II
INDEX
Part I. Financial Information
Balance Sheets - June 30, 1995 and December 31, 1994 3
Statements of Operations - For the Three Months and
Six Months Ended June 30, 1995 and 1994 4
Statements of Cash Flows - For the Six Months
Ended June 30, 1995 and 1994 5
Statement of Partners' Equity - For the Six Months
Ended June 30, 1995 6
Notes to Financial Statements 7
Management's Discussion and Analysis of the
Results of Operations 8
Part II. Other Information 9
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COMMONWEALTH GROWTH FUND II
(A Limited Partnership)
Balance Sheets
June 30, December 31,
1995 1994
(Unaudited) (Audited)
----------- -----------
Assets
Land $ 160,000 160,000
Notes receivable 3,054,869 3,054,869
Cash 526,941 430,596
Other assets 47,887 59,814
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Total assets $ 3,789,697 3,705,279
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Liabilities and Partners' Equity
Liabilities:
Deferred gain 69,739 69,739
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Total liabilities 69,739 69,739
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Partners' Equity:
General partners' equity (32,865) (37,086)
Limited partners' equity; authorized 1,000,000 units;
issued and outstanding 459,698 in 1995 and 1994 3,752,823 3,672,626
----------- -----------
Total partners' equity 3,719,958 3,635,540
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Total liabilities and partners' equity $ 3,789,697 3,705,279
============ ===========
See accompanying notes to financial statements.
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COMMONWEALTH GROWTH FUND II
(A Limited Partnership)
Statements of Operations
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1995 1994 1995 1994
--------- ---------- ---------- ----------
Rental income $ 3,095 83,058 3,095 135,325
Expenses:
Operating expenses 4,106 45,527 13,490 81,314
Depreciation and amortization -- 12,638 -- 24,981
--------- ---------- ---------- ----------
Income from rental operations (1,011) 24,893 (10,395) 29,030
Interest income 77,362 104,191 151,664 236,131
General and administrative expenses 21,327 28,503 56,851 52,020
--------- ---------- ---------- ----------
Net income 55,024 100,581 84,418 213,141
Allocated to general partners 2,751 5,029 4,221 10,657
--------- ---------- ---------- ----------
Allocated to limited partners $ 52,273 95,552 80,197 202,484
========= ========== ========== ==========
Net income per limited
partnership unit $ 0.11 0.21 0.17 0.44
========= ========== ========== ==========
Weighted average number of
units outstanding 459,698 459,698 459,698 459,698
========= ========== ========== ==========
See accompanying notes to financial statements.
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COMMONWEALTH GROWTH FUND II
(A Limited Partnership)
Statements of Cash Flows
(Unaudited)
Six Months Ended
June 30,
1995 1994
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Cash flows from operating activities:
Net income $ 84,418 213,141
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Adjustments to reconcile net income to net
cash provided by operating activitivities:
Depreciation and amortization -- 24,981
Changes in other assets and liabilities
Decrease (increase) in other assets 11,927 (41,280)
Increase in accounts payable and
accrued expenses -- 926
Increase in other liabilities -- 3,625
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Total adjustments to net income 11,927 (11,748)
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Net cash provided by operating activities 96,345 201,393
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Cash flows from investing activities:
Improvements to rental properties -- (101,598)
Collections on notes receivable -- 2,973
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Net cash used by investing activities 0 (98,625)
Cash flows from financing activities:
Distributions to partners -- (483,893)
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Net cash used by financing activities 0 (483,893)
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Net increase (decrease) in cash 96,345 (381,125)
Cash, beginning of year 430,596 895,713
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Cash, end of year $ 526,941 514,588
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See accompanying notes to financial statements.
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COMMONWEALTH GROWTH FUND II
(A Limited Partnership)
Statement of Partners' Equity
For the Six Months Ended June 30, 1995
(Unaudited)
General Limited
Partners Partners Total
----------- ----------- -----------
Balance at December 31, 1994 $ (37,086) 3,672,626 3,635,540
Net income 4,221 80,197 84,418
----------- ----------- -----------
Balance at June 30, 1995 $ (32,865) 3,752,823 3,719,958
=========== =========== ===========
See accompanying notes to financial statements.
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COMMONWEALTH GROWTH FUND II
NOTES TO FINANCIAL STATEMENTS
(1) In the opinion of the General Partners, the accompanying unaudited
financial statements contain all adjustments necessary to present fairly
the financial position as of June 30, 1995, and the results of its
operations for the three months and six months ended June 30, 1995 and
cash flows for the six months ended June 30, 1995.
(2) The other accounting policies followed by the Partnership are set forth
in Note 1 to the Partnership's financial statements in the 1994 Form
10-K which is incorporated herein by reference.
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COMMONWEALTH GROWTH FUND II
MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Rental income decreased $79,963 and $132,230 for the three months and six
months ended June 30, 1995, respectively, compared to the same periods in the
prior year, due to the sale of the Southland Park property in October 1994.
Operating expenses decreased $41,421 and $67,824 for the three months and six
months ended June 30, 1995, respectively, compared to the same periods in the
prior year, due to the sale of the Southland Park property in October 1994.
Depreciation and amortization were zero for the three months and six months
ended June 30, 1995, due to the sale of the Southland Park property (the
remaining rental property) in October 1994.
Interest income decreased $26,829 and $84,467 for the three months and six
months ended June 30, 1995, respectivley, compared to the same periods in the
prior year, due to the payoff of a note receivable in August 1994.
General and administrative expenses decreased $7,176 for the three months
ended June 30, 1995, compared to the same period in the prior year, due to
decreased accounting expenses which were offset in part by increased
registrar expenses. However, general and administrative expenses increased
$4,831 for the six months ended June 30, 1995, compared to the same period in
the prior year. This change is primarily attributable to increased
accounting, registrar, and shareholder relations expenses during the three
months ended March 31, 1995. This increase was partially offset by decreased
legal expenses.
LIQUIDITY AND CAPITAL RESOURCES
The Partnership has met its liquidity needs through cash reserves and
operating income. The Partnership currently has no material commitments and
anticipates that these sources will continue to be adequate to meet the
Partnership's future liquidity needs.
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PART II. OTHER INFORMATION
ITEM 6: REPORTS ON FORM 8-K
The Partnership filed no reports on Form 8-K during the quarter ended
June 30, 1995.
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SIGNATURES
Pursuant to the requirement of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
COMMONWEALTH GROWTH FUND II
--------------------------------
(Registrant)
8/4/95 /s/ JEFFREY BERGER
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Date Jeffrey Berger
Individual General Partner
8/4/95 /s/ JEFFREY BERGER
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Date Jeffrey Berger
President, Managing General Partner
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EXHIBIT INDEX
Ex. 27 Financial Data Schedule