UNITED CASH MANAGEMENT INC
N-30D, 1994-08-26
Previous: UNITED CASH MANAGEMENT INC, NSAR-B, 1994-08-26
Next: DREYFUS MUNICIPAL MONEY MARKET FUND INC, 497, 1994-08-26



<PAGE>


















































         UNITED
         CASH
         MANAGEMENT,
         INC.
         ANNUAL
         REPORT
         ---------------------------------------
         For the fiscal year ended June 30, 1994



<PAGE>
FUND MANAGER'S LETTER
- -----------------------------------------------------------------
JUNE 30, 1994



Dear Shareholder:

     This report relates to the operation of United Cash Management, Inc. for
the fiscal year ended June 30, 1994.

     During the Fund's past fiscal year, the United States economy continued to
expand moderately.  In response to the economic environment and possible upward
pressure on prices, the Federal Reserve Board raised short-term interest rates.

     Even as interest rates rise, extending the Fund's average maturity can be
advantageous when the yield curve is particularly steep, as has been the
situation recently.  Accordingly, we invested a portion of the Fund's assets in
securities with maturities longer than 90 days.  We also invested about one-
third of the Fund's assets in floating-rate notes, which have yields that
increase as short-term interest rates rise.

     We anticipate that the Federal Reserve Board may continue to raise short-
term interest rates, and we expect to pursue the same strategies we have
employed in the recent past in seeking to achieve the Fund's investment
objectives in the upcoming fiscal year.  We will continue to hold floating-rate
notes that respond quickly to rising interest rates, and adjust the average
maturity of the Fund's portfolio securities to take full advantage of a changing
interest rate environment.

     We appreciate your continued confidence.




Respectfully,


Richard K. Poettgen
Manager, United Cash Management, Inc.

<PAGE>
THE INVESTMENTS OF
UNITED CASH MANAGEMENT, INC.
JUNE 30, 1994

                                           Principal
                                           Amount in
                                           Thousands        Value

BANK OBLIGATIONS
Certificates of Deposit
 Domestic - 6.31%
 NationsBank of N. C., Charlotte,
   5.4%, 5-19-95 .........................   $10,000 $  9,999,931
 PNC Bank, N.A.:
   3.75%, 8-2-94 .........................     5,000    5,000,000
   3.55%, 1-20-95 ........................     5,000    4,996,468
   Total .................................             19,996,399

 Yankee - 1.58%
 Credit Suisse, New York,
   4.03%, 2-17-95 ........................     5,000    5,000,925

TOTAL BANK OBLIGATIONS - 7.89%                       $ 24,997,324
 (Cost: $24,997,324)

CORPORATE OBLIGATIONS
Commercial Paper
 Aerospace - 2.45%
 United Technologies Corp.,
   4.26%, 7-28-94 ........................     7,800    7,775,079

 Chemicals Major - 3.15%
 Air Products and Chemicals, Inc.,
   4.27%, 7-12-94 ........................    10,000    9,986,953

 Drugs and Hospital Supply - 0.47%
 Ciba-Geigy Ltd.,
   4.37%, 7-19-94 ........................     1,500    1,496,722

 Electronics - 1.58%
 Intel Corporation,
   4.3%, 7-1-94 ..........................     5,000    5,000,000

 Financial - 7.88%
 B.A.T. Capital Corp.,
   4.25%, 7-5-94 .........................     5,000    4,997,639
 Deere (John) Credit Co.,
   4.37%, 7-18-94 ........................    10,000    9,979,364
 PHH Corp.,
   4.26%, 7-18-94 ........................    10,000    9,979,883
   Total .................................             24,956,886



                See Notes to Schedule of Investments on page 7.
<PAGE>
THE INVESTMENTS OF
UNITED CASH MANAGEMENT, INC.
JUNE 30, 1994
                                           Principal
                                           Amount in
                                           Thousands        Value

CORPORATE OBLIGATIONS (Continued)
Commercial Paper (Continued)
 Food and Related - 0.14%
 Sara Lee Corporation,
   Master Note ...........................   $   440 $    440,000

 Leisure Time - 3.10%
 Grand Metropolitan Investment Corp.,
   4.8%, 11-15-94 ........................    10,000    9,817,334

 Machinery - 1.99%
 Cooper Industries, Inc.,
   4.25%, 7-11-94.........................     6,300    6,292,563

 Public Utilities - Electric - 8.03%
 Duke Power Co.,
   4.25%, 7-5-94 .........................     5,000    4,997,639
 Pacific Gas and Electric Co.,
   4.3%, 7-26-94 .........................    10,000    9,970,139
 Potomac Electric Power Co.,
   4.35%, 7-11-94 ........................     5,500    5,493,354
 Southern California Edison Company,
   4.33%, 7-6-94 .........................     5,000    4,996,993
   Total .................................             25,458,125

 Public Utilities - Gas - 3.15%
 Questar Corp.:
   4.28%, 7-22-94 ........................     4,500    4,488,765
   4.32%, 7-29-94 ........................     5,500    5,481,520
   Total .................................              9,970,285

 Tobacco - 3.15%
 Philip Morris, Incorporated,
   4.25%, 7-6-94 .........................    10,000    9,994,098

Total Commercial Paper - 35.09%                       111,188,045

Commercial Paper (backed by irrevocable
 bank letter of credit)
 Automotive - 3.16%
 Hyundai Motor Finance Co. (Bank of
   America NT & SA),
   4.25%, 7-5-94 .........................    10,000    9,995,278


                See Notes to Schedule of Investments on page 7.




<PAGE>
THE INVESTMENTS OF
UNITED CASH MANAGEMENT, INC.
JUNE 30, 1994
                                           Principal
                                           Amount in
                                           Thousands        Value

CORPORATE OBLIGATIONS (Continued)
Commercial Paper (backed by irrevocable
 bank letter of credit) (Continued)
 Computers and Office Equipment - 2.11%
 Comdisco Inc. (Series BAB)
   (Barclays Bank PLC),
   4.27%, 7-5-94 .........................   $ 6,700 $  6,696,821

 Financial - 1.13%
 Mission Funding Co. (Barclays
   Bank PLC),
   4.3%, 7-27-94 .........................     3,100    3,090,373
 Spiegel Funding Corp. (Dresdner
   Bank A.G.),
   4.27%, 7-6-94 .........................       500      499,703
   Total .................................              3,590,076

 Leisure Time - 3.16%
 Paragon Communications (Credit
   Lyonnais):
   4.325%, 7-14-94 .......................     6,008    5,998,617
   4.325%, 7-19-94 .......................     4,036    4,027,272
   Total .................................             10,025,889

Total Commercial Paper (backed by irrevocable
 bank letter of credit) - 9.56%                        30,308,064

Notes
 Beverages - 3.15%
 PepsiCo, Inc.,
   4.37%, 7-6-94 .........................    10,000   10,000,000

 Financial - 14.67%
 AT&T Capital Corp.,
   3.48%, 9-23-94 ........................     9,200    9,200,000
 American Express Credit Corp.,
   5.95%, 1-27-95 ........................     8,000    8,063,569
 Avco Financial Services Inc.,
   4.46%, 7-6-94 .........................    10,000   10,000,000
 Merrill Lynch & Co., Inc.,
   4.8%, 8-15-94 .........................    10,000   10,000,000
 Mobil Australia Finance Co.,
   8.0%, 7-25-94 .........................     9,200    9,226,215
   Total .................................             46,489,784





                See Notes to Schedule of Investments on page 7.
<PAGE>
THE INVESTMENTS OF
UNITED CASH MANAGEMENT, INC.
JUNE 30, 1994
                                           Principal
                                           Amount in
                                           Thousands        Value

CORPORATE OBLIGATIONS (Continued)
Notes (Continued)
 Public Utilities - Electric - 1.61%
 Florida Power Corp.,
   8.4%, 12-1-94 .........................   $ 5,000 $  5,097,766

Total Notes - 19.43%                                   61,587,550

TOTAL CORPORATE OBLIGATIONS - 64.08%                 $203,083,659
 (Cost: $203,083,659)

MUNICIPAL OBLIGATIONS
California - 2.90%
 City of Anaheim, California, Certificates of
   Participation (1993 Arena Financing Project),
   Adjustable Rate Taxable Securities
   (Credit Suisse),
   4.375%, 7-5-94 ........................     9,200    9,200,000

Georgia - 3.15%
 Development Authority of Richmond
   County (Georgia), Taxable
   Industrial Revenue Bonds
   (NutraSweet Project), Series
   1990 (Union Bank of Switzerland),
   5.71%, 6-2-95 .........................    10,000   10,000,000

Missouri - 0.95%
 Missouri Economic Development, Export
   and Infrastructure Board, Taxable
   Industrial Development Revenue Bonds
   (Heilig-Meyers Company Project),
   Series 1992 (AmSouth Bank N.A.),
   4.55%, 7-6-94 .........................     3,000    3,000,000

New York - 5.84%
 Health Insurance Plan of Greater New York
   (Morgan Guaranty Trust Company of New York),
   4.5%, 7-6-94 (A) ......................    18,500   18,500,000

TOTAL MUNICIPAL OBLIGATIONS - 12.84%                 $ 40,700,000
 (Cost: $40,700,000)

                See Notes to Schedule of Investments on page 7.



<PAGE>
THE INVESTMENTS OF
UNITED CASH MANAGEMENT, INC.
JUNE 30, 1994
                                           Principal
                                           Amount in
                                           Thousands        Value

UNITED STATES GOVERNMENT OBLIGATIONS
 Federal Home Loan Banks,
   4.65%, 7-8-94 .........................   $14,000 $ 14,000,000
 Federal Home Loan Mortgage Corporation,
   4.70%, 9-7-94 .........................    10,000   10,000,000
 Federal National Mortgage Association,
   4.65%, 9-20-94 ........................     9,500    9,500,000
 Student Loan Management Association,
   4.83%, 7-6-94 .........................    13,900   13,900,000

TOTAL UNITED STATES GOVERNMENT
 OBLIGATIONS - 14.96%                                $ 47,400,000
 (Cost: $47,400,000)

TOTAL INVESTMENT SECURITIES - 99.77%                 $316,180,983
 (Cost: $316,180,983)

CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.23%         738,657

NET ASSETS - 100.00%                                 $316,919,640


Notes to Schedule of Investments

(A) Security is subject to an irrevocable put option.

Cost of investments owned is the same as that used for Federal income tax
     purposes.

See Note 1 to financial statements for security valuation and other significant
     accounting policies concerning investments.
<PAGE>
UNITED CASH MANAGEMENT, INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1994

Assets
 Investment securities - at value (Note 1)  ........ $316,180,983
 Cash   ............................................      579,156
 Receivables:
   Interest ........................................    2,037,706
   Fund shares sold ................................    1,282,629
 Prepaid insurance premium  ........................       26,567
                                                     ------------
    Total assets  ..................................  320,107,041
                                                     ------------
Liabilities
 Payable for Fund shares redeemed  .................    2,911,901
 Accrued transfer agency and dividend disbursing  ..      146,117
 Dividends payable  ................................      113,385
 Accrued accounting services fee  ..................        4,167
 Other  ............................................       11,831
                                                     ------------
    Total liabilities  .............................    3,187,401
                                                     ------------
      Total net assets ............................. $316,919,640
                                                     ============
Net Assets
 $0.01 par value capital stock, authorized --
   5,000,000,000; shares outstanding -- 316,919,640
   Capital stock ................................... $  3,169,196
   Additional paid-in capital ......................  313,750,444
                                                     ------------
    Net assets applicable to outstanding
      units of capital ............................. $316,919,640
                                                     ============
Net asset value, redemption and offering price
 per share  ........................................        $1.00
                                                            =====


                       See notes to financial statements.

<PAGE>
UNITED CASH MANAGEMENT, INC.
STATEMENT OF OPERATIONS
For the Fiscal Year Ended JUNE 30, 1994

Investment Income
 Interest  .........................................  $11,658,916
                                                      -----------
 Expenses (Note 2):
   Transfer agency and dividend disbursing .........    1,757,449
   Investment management fee .......................    1,372,977
   Custodian fees ..................................       57,975
   Accounting services fee .........................       50,000
   Audit fees ......................................       20,500
   Legal fees ......................................        5,133
   Other ...........................................      141,128
                                                      -----------
    Total expenses  ................................    3,405,162
                                                      -----------
      Net investment income ........................    8,253,754
                                                      -----------
       Net increase in net assets resulting
         from operations ...........................  $ 8,253,754
                                                      ===========


                       See notes to financial statements.

<PAGE>
UNITED CASH MANAGEMENT, INC.
STATEMENT OF CHANGES IN NET ASSETS

                                        For the fiscal year ended
                                                 June 30,
                                        -------------------------
                                             1994        1993
                                       ------------- ------------
Decrease in Net Assets
 Operations:
   Net investment income ..............$  8,253,754  $ 10,085,867
                                       ------------  ------------
    Net increase in net assets
      resulting from operations .......   8,253,754    10,085,867
                                       ------------  ------------
 Dividends to shareholders
   from net investment income* ........  (8,253,754)  (10,085,867)
                                       ------------  ------------
 Capital share transactions:
   Proceeds from sale of shares
    (421,971,836 and 420,866,621
    shares, respectively)  ............ 421,971,836   420,866,621
   Proceeds from reinvestment of
    dividends (8,072,255 and
    9,862,502 shares, respectively) ...   8,072,255     9,862,502
   Payments for shares redeemed
    (463,748,538 and 528,231,957
    shares, respectively)  ............(463,748,538) (528,231,957)
                                       ------------  ------------
    Net decrease in net assets
      resulting from capital
      share transactions .............. (33,704,447)  (97,502,834)
                                       ------------  ------------
      Total decrease .................. (33,704,447)  (97,502,834)

Net Assets
 Beginning of period  ................. 350,624,087   448,126,921
                                       ------------  ------------
 End of period  .......................$316,919,640  $350,624,087
                                       ============  ============
   Undistributed net investment
    income  ...........................        $---          $---
                                               ====          ====


                    *See "Financial Highlights" on page 11.


                       See notes to financial statements.

<PAGE>
UNITED CASH MANAGEMENT, INC.
FINANCIAL HIGHLIGHTS
For a Share of Capital Stock Outstanding
Throughout Each Period:


                                 For the fiscal year ended June 30,
               ---------------------------------------------
                      1994    1993    1992    1991    1990
                     ------- ------- ------- ------- -------
Net asset value,
 beginning of
 period  ...........  $1.00   $1.00   $1.00   $1.00   $1.00
                     ------- ------- ------- ------- -------
Net investment
 income  ...........   0.0252  0.0251  0.0434  0.0665  0.0786
Less dividends
 declared  .........  (0.0252)(0.0251)(0.0434)(0.0665)(0.0786)
                     ------- ------- ------- ------- -------
Net asset value,
 end of period  ....  $1.00   $1.00   $1.00   $1.00   $1.00
                     ======= ======= ======= ======= =======
Total return........   2.55%   2.57%   4.41%   6.89%   8.18%
Net assets, end of
 period (000
 omitted)  .........$316,920$350,624$448,127$579,944$563,893
Ratio of expenses to
 average net
 assets  ...........   1.04%   1.06%   0.99%   0.95%   0.95%
Ratio of net
 investment income
 to average net
 assets  ...........   2.51%   2.56%   4.36%   6.65%   7.86%


                       See notes to financial statements.


<PAGE>
UNITED CASH MANAGEMENT, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1994

NOTE 1 -- Significant Accounting Policies

     United Cash Management, Inc. (the "Fund") is registered under the
Investment Company Act of 1940 as a diversified, open-end management investment
company.  The following is a summary of significant accounting policies
consistently followed by the Fund in the preparation of its financial
statements.  The policies are in conformity with generally accepted accounting
principles.

A.   Security valuation -- The Fund invests only in money market securities with
     maturities or irrevocable put options within one year.  The Fund uses the
     amortized cost method of security valuation which is accomplished by
     valuing a security at its cost and thereafter assuming a constant
     amortization rate to maturity of any discount or premium.

B.   Security transactions and related investment income -- Security
     transactions are accounted for on the trade date (date the order to buy or
     sell is executed).  Securities gains and losses, if any, are calculated on
     the identified cost basis.  Interest income is recorded on the accrual
     basis.

C.   Federal income taxes -- It is the Fund's policy to distribute all of its
     taxable income and capital gains to its shareholders and otherwise qualify
     as a regulated investment company under the Internal Revenue Code.
     Accordingly, no provision has been made for Federal income taxes.

D.   Dividends to shareholders -- All of the Fund's net income is declared and
     recorded by the Fund as dividends on each day to shareholders of record at
     the time of the previous determination of net asset value.  Dividends are
     declared from the total of net investment income, plus or minus realized
     gains or losses on portfolio securities.  Since the Fund does not expect to
     realize any long-term capital gains, it does not expect to pay any capital
     gains distributions.

NOTE 2 -- Investment Management and Payments to Affiliated Persons

     The Fund pays a fee for investment management services.  The fee is
computed daily based on the net asset value at the close of business.  The fee
consists of a "Group" fee computed each day on the combined net asset values of
all of the funds in the United Group of mutual funds (approximately $10.5
billion of combined net assets at June 30, 1994) at annual rates of .51% of the
first $750 million of combined net assets, .49% on that amount between $750
million and $1.5 billion, .47% between $1.5 billion and $2.25 billion, .45%
between $2.25 billion and $3 billion, .43% between $3 billion and $3.75 billion,
.40% between $3.75 billion and $7.5 billion, .38% between $7.5 billion and $12
billion, and .36% of that amount over $12 billion.  The Fund accrues and pays
this fee daily.

     Pursuant to assignment of the Investment Management Agreement between the
Fund and Waddell & Reed, Inc. ("W&R"), Waddell & Reed Investment Management
Company ("WRIMCO"), a wholly-owned subsidiary of W&R, serves as the Fund's
investment manager.

     The Fund has an Accounting Services Agreement with Waddell & Reed Services
Company ("WARSCO"), a wholly-owned subsidiary of W&R.  Under the agreement,
WARSCO acts as the agent in providing accounting services and assistance to the
Fund and pricing daily the value of shares of the Fund.  For these services, the
Fund pays WARSCO a monthly fee of one-twelfth of the annual fee shown in the
following table.

                            Accounting Services Fee
                  Average
               Net Asset Level            Annual Fee
          (all dollars in millions) Rate for Each Level
          ------------------------- -------------------
           From $    0 to $   10         $      0
           From $   10 to $   25         $ 10,000
           From $   25 to $   50         $ 20,000
           From $   50 to $  100         $ 30,000
           From $  100 to $  200         $ 40,000
           From $  200 to $  350         $ 50,000
           From $  350 to $  550         $ 60,000
           From $  550 to $  750         $ 70,000
           From $  750 to $1,000         $ 85,000
                $1,000 and Over          $100,000

     At present, the Fund operates under state expense requirements which limit
the amount of aggregate annual expenses, adjusted for certain excess expenses,
that the Fund may incur during its fiscal year.  The Manager will reimburse the
Fund for any expenses in excess of the limitation.  No such reimbursement is
required for the period ended June 30, 1994.

     The Fund also pays WARSCO a monthly per account charge of $1.75 for each
shareholder account which was in existence at any time during the prior month
and $0.75 for each shareholder check it processed.  The Fund also reimburses W&R
and WARSCO for certain out-of-pocket costs.

     The Fund paid Directors' fees of $12,587.

     W&R is an indirect subsidiary of Torchmark Corporation, a holding company,
and United Investors Management Company, a holding company, and a direct
subsidiary of Waddell & Reed Financial Services, Inc., a holding company.


<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders of
  United Cash Management, Inc.

In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of United Cash Management, Inc. (the
"Fund") at June 30, 1994, the results of its operations for the year then ended
and the changes in its net assets and the financial highlights for the periods
indicated, in conformity with generally accepted accounting principles.  These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits.  We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at June
30, 1994 by correspondence with the custodian, provide a reasonable basis for
the opinion expressed above.



PRICE WATERHOUSE LLP
Kansas City, Missouri
July 29, 1994








<PAGE>
INCOME TAX INFORMATION

     Dividends are taxable to shareholders and are reportable in your Federal
income tax returns for the years in which the dividends were received or
reinvested.

     Statements as to the tax status of each investor's dividends will be mailed
annually.

     Dividends are declared and recorded by the Fund on each day the New York
Stock Exchange is open for business.

     Shareholders are advised to consult with their tax advisers concerning the
tax treatment of dividends from the Fund.

Corporations:
     The dividends are not eligible for the dividends received deduction.


To all IRA Planholders:

As required by law, income tax will automatically be withheld from any
distribution or withdrawal from an IRA unless you make a written election not to
have taxes withheld.  The election may be made by submitting forms provided by
Waddell & Reed, Inc. which can be obtained from your Waddell & Reed
representative or by submitting Internal Revenue Service form W-4P.  Once made,
an election can be revoked by providing written notice to Waddell & Reed, Inc.
If you elect not to have tax withheld you may be required to make payments of
estimated tax.  Penalties may be imposed by the IRS if withholding and estimated
tax payments are not adequate.


<PAGE>
DIRECTORS
Ronald K. Richey, Birmingham, Alabama, Chairman of the Board
Henry L. Bellmon, Red Rock, Oklahoma
Dodds I. Buchanan, Boulder, Colorado
Jay B. Dillingham, Kansas City, Missouri
John F. Hayes, Hutchinson, Kansas
Glendon E. Johnson, Miami, Florida
William T. Morgan, Los Angeles, California
Doyle Patterson, Kansas City, Missouri
Keith A. Tucker, Overland Park, Kansas
Frederick Vogel, III, Milwaukee, Wisconsin
Paul S. Wise, Carefree, Arizona
Leslie S. Wright, Birmingham, Alabama


OFFICERS
Keith A. Tucker, President
Robert L. Hechler, Vice President
Henry J. Herrmann, Vice President
John M. Holliday, Vice President
Theodore W. Howard, Vice President and Treasurer
Rodney O. McWhinney, Vice President
Sharon K. Pappas, Vice President and Secretary
Richard K. Poettgen, Vice President


This report is submitted for the general information of the shareholders of
United Cash Management, Inc.  It is not authorized for distribution to
prospective investors in the Fund unless accompanied with or preceded by the
United Cash Management, Inc. current prospectus.



<PAGE>
THE UNITED GROUP OF MUTUAL FUNDS
United Cash Management, Inc.
United Government Securities Fund, Inc.
United Bond Fund
United Municipal Bond Fund, Inc.
United Continental Income Fund, Inc.
United Income Fund
United Municipal High Income Fund, Inc.
United High Income Fund, Inc.
United High Income Fund II, Inc.
United Accumulative Fund
United Vanguard Fund, Inc.
United New Concepts Fund, Inc.
United Science and Technology Fund
United International Growth Fund, Inc.
United Gold & Government Fund, Inc.
United Retirement Shares, Inc.


- ------------------------------------

FOR MORE INFORMATION:
Contact your representative, or your
local office as listed on your
Account Statement, or contact:
   WADDELL & REED
   CUSTOMER SERVICE
   6300 Lamar Avenue
   P.O. Box 29217
   Shawnee Mission, KS 66201-9217
   Toll-Free - (800)366-5465
   Local - 236-1303
For Yield Information Only
   Toll-Free - (800)366-4953
   Local - 236-1307



NUR1010A(6-94)
printed on recycled paper





© 2022 IncJournal is not affiliated with or endorsed by the U.S. Securities and Exchange Commission