FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(X) QUARTERLY REPORT UNDER SECTION 13 OR 15 (D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1996
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___________ to ___________
Commission file number 0-17091
CSA Income Fund Limited Partnership II
(Exact name of registrant as specified in its charter)
Massachusetts 04-2932178
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
22 Batterymarch St., Boston, Massachusetts 02109
(Address of principal executive offices) (Zip Code)
(617) 357-1700
(Registrant's telephone number, including area code)
Former name, former address and former fiscal year,
if changed since last report
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 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.
Yes: X No:
<PAGE>
PART I - FINANCIAL INFORMATION
CSA INCOME FUND LIMITED PARTNERSHIP II
<TABLE>
CSA INCOME FUND LIMITED PARTNERSHIP II
STATEMENTS OF FINANCIAL POSITION AS OF MARCH 31, 1996 (UNAUDITED) AND
DECEMBER 31, 1995
______________________________________________________________________
<CAPTION>
(Unaudited)
March 31, 1966 December 31, 1995
<S> <C> <C>
Assets
Cash and cash equivalents $ 873,224 $ 1,021,366
Rentals receivable 25,318 21,109
Accounts receivable-affiliates 133,277 133,277
Sales proceeds receivable 729 46,367
Rental equipment, at cost 7,042,559 6,996,398
Less accumulated depreciation (5,404,050) (5,217,222)
Net rental equipment 1,638,509 1,779,176
Total assets $ 2,671,057 $ 3,001,295
Liabilities and partners'
capital
Accrued management and
reimbursable fees $ 16,239 $ 17,710
Accounts payable 17,343 12,904
Sales tax payable 2,791 1,591
Deferred income 8,164 4,836
Notes payable 673,473 803,137
Limited recourse notes payable 73,203 71,382
Total liabilities 791,213 911,560
Partners' capital (deficit):
General Partner:
Capital contributions 1,000 1,000
Cumulative net income (loss) 774 (613)
Cumulative cash distributions (157,596) (154,111)
(155,822) (153,724)
Limited Partners (78,785 units):
Capital contributions,
net of offering costs 17,563,265 17,563,265
Cumulative net loss 76,670 (60,615)
Cumulative cash distributions (15,604,269) (15,259,191)
2,035,666 2,243,459
Total Partners' capital 1,879,844 2,089,735
Total liabilities and
partners' capital $ 2,671,057 $ 3,001,295
</TABLE>
<PAGE>
<TABLE>
CSA INCOME FUND LIMITED PARTNERSHIP II
STATEMENTS OF OPERATIONS (UNAUDITED) AS OF MARCH 31, 1996 AND 1995
_____________________________________________________________________
<CAPTION>
1996 1995
<S> <C> <C>
Revenue:
Rental income $ 384,685 $ 676,999
Interest income 9,437 12,456
Gain on sale of equipment 424 20,579
Total revenues 394,546 710,034
Costs and expenses:
Depreciation 190,873 422,485
Interest 22,022 19,104
Management fees 19,234 33,791
General and administrative 23,745 21,516
Total expenses 255,874 496,896
Net income $ 138,672 $ 213,138
Net income allocation:
General Partner $ 1,387 $ 2,131
Limited Partners 137,285 211,007
$ 138,672 $ 213,138
Net income per Limited
Partnership Unit $ 1.74 $ 2.68
Number of Limited Partnership
Units 78,785 78,785
</TABLE>
<PAGE>
<TABLE>
CSA INCOME FUND LIMITED PARTNERSHIP II
STATEMENTS OF CASH FLOWS (UNAUDITED) AS OF MARCH 31, 1996 AND 1995
_____________________________________________________________________
<CAPTION>
1996 1995
<S> <C> <C>
Cash flows from operations:
Cash received from rental
of equipment $ 362,525 $ 599,873
Cash paid for operating and
management expenses (38,811) (117,406)
Interest paid (13,880) (12,301)
Interest received 9,437 12,456
Net cash from operations 319,271 482,622
Cash flows from investments:
Purchase of equipment (47,295) -
Sale of equipment 56,289 563,180
Net cash from (used for)
investments 8,994 563,180
Cash flows from financing:
Repayment of notes payable (127,843) (381,336)
Payment of cash distributions (348,564) (348,564)
Net cash used for financing (476,407) (729,900)
Net change in cash and
cash equivalents (148,142) 315,902
Cash and cash equivalents
at beginning of period 1,021,366 790,245
Cash and cash equivalents
at end of period $ 873,224 $ 1,106,147
</TABLE>
<PAGE>
CSA INCOME FUND LIMITED PARTNERSHIP II
NOTE TO FINANCIAL STATEMENTS
______________________________________________________________________
The quarterly financial statements have been prepared by the
Partnership without audit. Certain information and footnote
disclosures normally included in the annual financial statements have
been condensed or omitted from the accompanying statements. For such
information, reference should be made to the financial statements and
notes thereto included in the Partnership's annual report on Form 10-K
for the year ended December 31, 1995.
In the General Partner's opinion, the unaudited financial statements
reflect all adjustments necessary to present fairly the financial
position of CSA Income Fund Limited Partnership II as of March 31,
1996 and December 31, 1995 and the results of operations and cash
flows for the periods presented therein.
<PAGE>
CSA INCOME FUND LIMITED PARTNERSHIP II
GENERAL PARTNER'S DISCUSSION OF OPERATIONS
______________________________________________________________________
Gross rental income was $384,685 and $676,999 and net income was
$138,672 and $213,138 for the quarters ended March 31, 1996 and 1995,
respectively. The decrease in gross rental income and net income is
attributable to the expected occurrence of reduced rental rates for
re-leased equipment and to the ongoing sale of equipment from the
Partnership's portfolio. The effect of lower rental revenue on net
income was partially offset by lower levels of depreciation as the
result of the remarketing of fully depreciated equipment.
The Partnership generated $375,560 in cash flow from operations and
from the sale of equipment during the three months ended March 31,
1996. This cash and cash on hand were used primarily to make a cash
distribution to the Limited Partners and pay down debt. Notes payable
was reduced by $127,843 during the first quarter of 1996 and the cash
distribution paid to Limited Partners was $345,078.
The Partnership's results of operations and liquidity in future
periods will be dependent upon the addition of leased equipment, the
sale and/or release of equipment as it comes off lease and the level
of debt service. Approximately 65% of the remaining leases in the
Partnership's portfolio are scheduled to expire by December 31, 1996,
with the balance expiring at various dates through 1998.
The Partnership distributed $4.38 per Limited Partnership Unit on
February 15, 1996. To date, the Partnership has made cash distributions
to the Limited Partners ranging from 78% to 87% of their initial
investment, depending on when the Limited Partner entered the
Partnership. The objective of the Partnership is to return the Limited
Partners' investment through current cash distributions and provide a
return on the investment by continued distributions for as long as the
equipment continues to be leased. However, revenue generated by the
Partnership from lease renewals and remarketings after the initial
lease term have been lower than anticipated as a result of rapid
obsolescence in high technology equipment. As a result, the General
Partner presently estimates that the continued cash distributions may
not fully return the entire initial investment of the Limited Partners
and/or a return thereon. The General Partner will continue to report
on the Limited Partners' return of investment with each cash
distribution.
<PAGE>
CSA INCOME FUND LIMITED PARTNERSHIP II
PART II
______________________________________________________________________
Item 1 - Legal Proceedings
None
Item 2 - Changes in Securities
None
Item 3 - Defaults Upon Senior Securities
None
Item 4 - Submission of Matters to a Vote of Security Holders
None
Item 5 - Other Information
None
Item 6 - Exhibits and Reports on Form 8-K
(a) Exhibits - none.
(b) Reports on Form 8-K - none.
<PAGE>
SIGNATURES
______________________________________________________________________
Pursuant to the requirements 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.
CSA Income Fund Limited
Partnership II (Registrant)
By its General Partner,
CSA Income Funds, Inc.
Date: /s/ J. Frank Keohane
President and
Principal Executive Officer
Date: /s/ Richard F. Sullivan
Vice President,
Principal Accounting and
Finance Officer
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from
CSA Income Fund Limited Partnership II's Statement of Financial
Position as of March 31, 1996 and Statement of Operations for the three months then ended and is qualified in its entirety by refere
nce to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 873,224
<SECURITIES> 0
<RECEIVABLES> 158,595
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 7,042,559
<DEPRECIATION> 5,404,050
<TOTAL-ASSETS> 2,671,057
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 1,879,844
<TOTAL-LIABILITY-AND-EQUITY> 2,671,057
<SALES> 0
<TOTAL-REVENUES> 394,546
<CGS> 0
<TOTAL-COSTS> 210,107
<OTHER-EXPENSES> 23,745
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 22,022
<INCOME-PRETAX> 138,672
<INCOME-TAX> 0
<INCOME-CONTINUING> 138,672
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 138,672
<EPS-PRIMARY> 1.74
<EPS-DILUTED> 1.74
<FN>
<F1>The Registrant maintains an unclassified Statement of Financial Position.
</FN>
</TABLE>
