Monthly Operating Report of Daisytek Incorporated, BA Pargh for August 2003

EX-99.2 4 dex992.htm MONTHLY OPERATING REPORT OF DAISYTEK INCORPORATED, BA PARGH FOR AUGUST 2003 Monthly Operating Report of Daisytek Incorporated, BA Pargh for August 2003

Exhibit 99.2

		Monthly Operating Report

CASE NAME:	Daisytek, Incorporated B.A. Pargh Company Virtual Demand, Inc.	ACCRUAL BASIS

CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96

JUDGE:	H.D. Hale

UNITED STATES BANKRUPTCY COURT

NORTHERN	DISTRICT OF	TEXAS

	6 DIVISION

MONTHLY OPERATING REPORT-REVISED

MONTH ENDING: August 31, 2003

IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I DECLARE UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING REPORT (ACCRUAL BASIS-1 THROUGH ACCRUAL BASIS-7) AND THE ACCOMPANYING ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT AND COMPLETE. DECLARATION OF THE PREPARER (OTHER THAN RESPONSIBLE PARTY): IS BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE.

RESPONSIBLE PARTY:

/s/ Eric T. Logan		Interim Chief Financial Officer
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY		TITLE

Eric T. Logan		September 19, 2003
PRINTED NAME OF RESPONSIBLE PARTY		DATE

PREPARER:

/s/ Mark Corjay		Vice President, Controller
ORIGINAL SIGNATURE OF PREPARER		TITLE

Mark Corjay		September 19, 2003
PRINTED NAME OF PREPARER		DATE

		Monthly Operating Report

CASE NAME:	Daisytek, Incorporated B.A. Pargh Company Virtual Demand, Inc.	ACCRUAL BASIS-1

CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96

COMPARATIVE BALANCE SHEET

		SCHEDULE			MONTH May 31, 2003			MONTH June 30, 2003			MONTH 07/31/03			MONTH August 31, 2003
ASSETS
1.	UNRESTRICTED CASH	$	1,296,376		$	4,054,267		$	5,668,345		$	4,087,393		$	6,915,170
2.	RESTRICTED CASH
3.	TOTAL CASH	$	1,296,376		$	4,054,267		$	5,668,345		$	4,087,393		$	6,915,170
4.	ACCOUNTS RECEIVABLE (NET)	$	17,323,114		$	9,878,718		$	6,087,869		$	5,438,355		$	3,900,921
5.	INVENTORY	$	29,488,615		$	27,836,274		$	19,630,038		$	10,953,376		$	7,311,755
6.	NOTES RECEIVABLE
7.	PREPAID EXPENSES	$	4,385,371		$	5,568,105		$	5,867,949		$	4,691,892		$	4,516,438
8.	OTHER (ATTACH LIST)
	Intercompany accounts receivable,net	$	8,302,227		$	8,851,383		$	13,236,298		$	13,036,952		$	10,724,861
	Credit card and other receivables	$	221,169		$	142,089		$	630,864		$	174,832		$	203,515
	Deferred tax asset	$	28,497,969		$	28,239,610		$	28,239,610		$	28,239,610		$	28,239,610
	Taxes receivable	$	8,317,016		$	9,948,656		$	12,348,113		$	16,230,699		$	13,831,291
	Prepaid merchandise	$	0		$	0
	Employee payroll/travel advances	$	23,768		$	13,631		$	21,047		$	23,185		$	26,620
	TOTAL OTHER	$	45,362,149		$	47,195,369		$	54,475,932		$	57,705,278		$	53,025,897
9.	TOTAL CURRENT ASSETS	$	97,855,625		$	94,532,733		$	91,730,133		$	82,876,294		$	75,670,181
10.	PROPERTY, PLANT & EQUIPMENT	$	46,587,581		$	46,627,279		$	46,627,279		$	46,627,279		$	46,618,679
11.	LESS: ACCUMULATED DEPRECIATION / DEPLETION	$	18,626,655		$	19,088,891		$	19,638,593		$	20,185,000		$	20,728,502
12.	NET PROPERTY, PLANT & EQUIPMENT	$	27,960,926		$	27,538,388		$	26,988,686		$	26,442,279		$	25,890,177
13.	DUE FROM INSIDERS	$	67,289		$	67,289		$	8,600
14.	OTHER ASSETS—NET OF OTHER AMORTIZATIONS
	Reserve—due from insiders	$	(58,689	)	$	(58,689	)
	Deferred acquisition costs	$	3,196,694		$	3,196,694		$	3,196,684		$	3,196,684		$	3,196,684
	Software development assets	$	366,231		$	0		$	0
	TOTAL OTHER ASSETS—NET OF AMORTIZATION	$	3,504,236		$	3,138,005		$	3,196,684		$	3,196,684		$	3,196,684
15.	OTHER (ATTACH LIST)	$	0		$	0
16.	TOTAL ASSETS	$	129,388,076		$	125,276,415		$	121,924,103		$	112,515,257		$	104,757,042
POSTPETITION LIABILITIES
17.	ACCOUNTS PAYABLE				$	1,022,785		$	1,198,341		$	1,883,043		$	1,684,172
	AP on behalf of Daisytek International							$	(784,233	)	$	(1,169,138	)	$	(1,206,876	)
18.	TAXES PAYABLE				$	47,137		$	58,754		$	108,354		$	214,978
19.	NOTES PAYABLE
20.	PROFESSIONAL FEES				$	802,801		$	1,583,148		$	880,471		$	880,471
21.	SECURED DEBT
22.	OTHER (ATTACH LIST)
	Interest payable				$	299,438		$	324,009		$	255,170		$	230,419
	Other accounts payable and prepaid merchandise				$	900,458		$	1,837,869		$	3,039,798		$	2,923,063
	Acrued expenses				$	1,552,867		$	1,960,768		$	722,772		$	1,856,089
	TOTAL OTHER				$	2,752,763		$	4,122,646		$	4,017,740		$	5,009,571
23.	TOTAL POSTPETITION LIABILITIES				$	4,625,486		$	6,178,656		$	5,720,470		$	6,582,316
PREPETITION LIABILITIES
24.	SECURED DEBT	$	58,116,360		$	55,715,579		$	43,380,139		$	39,573,779		$	35,071,653
25.	PRIORITY DEBT	$	631,989		$	2,014
26.	UNSECURED DEBT	$	57,946,614		$	57,863,808		$	56,702,184		$	56,440,125		$	56,138,763
27.	OTHER (ATTACH LIST)
	Other accounts payable and prepaid merchandise	$	(2,863,809	)	$	(4,205,207	)	$	(3,862,006	)	$	(4,146,998	)	$	(4,145,674	)
	Interest payable	$	1,733,255		$	1,733,255
	Accrued expenses	$	6,553,875		$	4,784,273		$	5,299,962		$	5,960,310		$	5,960,310
	Accrued Federal Income Tax							$	499,883		$	1,035,103		$	1,089,417
	Capital lease liability	$	9,163,598		$	9,163,598		$	9,163,598		$	9,163,598		$	9,163,598
	TOTAL OTHER	$	14,586,919		$	11,475,919		$	11,101,437		$	12,012,013		$	12,067,651
28.	TOTAL PREPETITION LIABILITIES	$	131,281,882		$	125,057,320		$	111,183,760		$	108,025,917		$	103,278,067
29.	TOTAL LIABILITIES	$	131,281,882		$	129,682,806		$	117,362,416		$	113,746,387		$	109,860,383
EQUITY
30.	PREPETITION OWNERS’ EQUITY	$	(1,893,806	)	$	(1,893,806	)	$	(1,893,806	)	$	(1,893,806	)	$	(1,893,806	)
31.	POSTPETITION CUMULATIVE PROFIT OR (LOSS)				$	(3,581,423	)	$	5,386,656		$	(637,902	)	$	(4,278,372	)
32.	DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)				$	1,068,838		$	1,068,837		$	1,068,837		$	1,068,837
33.	TOTAL EQUITY	$	(1,893,806	)	$	(4,406,391	)	$	4,561,687		$	(1,462,871	)	$	(5,103,341	)
34.	TOTAL LIABILITIES & OWNERS’ EQUITY	$	129,388,076		$	125,276,415		$	121,924,103		$	112,283,516		$	104,757,042

		Monthly Operating Report

CASE NAME:	Daisytek, Incorporated B.A. Pargh Company Virtual Demand, Inc.	ACCRUAL BASIS-2

CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96

INCOME STATEMENT

		MONTH 5/7/03-5/31/03			MONTH June 30, 2003			MONTH July 31, 2003			MONTH August 31, 2003
REVENUES
1.	GROSS REVENUES	$	391,202		$	4,852,402		$	3,879,858		$	1,673,975
2.	LESS: RETURNS & DISCOUNTS	$	143,807		$	127,419		$	125,849		$	1,564
3.	NET REVENUE	$	247,395		$	4,724,983		$	3,754,009		$	1,672,411
COST OF GOODS SOLD
4.	MATERIAL
5.	DIRECT LABOR
6.	DIRECT OVERHEAD
7.	TOTAL COST OF GOODS SOLD	$	311,739		$	8,842,794		$	8,657,295		$	3,659,516
8.	GROSS PROFIT	$	(64,344	)	$	(4,117,811	)	$	(4,903,286	)	$	(1,987,105	)
OPERATING EXPENSES
9.	OFFICER / INSIDER COMPENSATION	$	102,369		$	102,369		$	128,975		$	175,191
10.	SELLING & MARKETING	$	2,507		$	(914	)	$	291		$	6,619
11.	GENERAL & ADMINISTRATIVE	$	830,139		$	1,333,895		$	1,015,309		$	962,118
12.	RENT & LEASE	$	721,600		$	950,650		$	628,622		$	802,664
13.	OTHER (ATTACH LIST)
14.	TOTAL OPERATING EXPENSES	$	1,656,615		$	2,386,000		$	1,773,197		$	1,946,592
15.	INCOME BEFORE NON-OPERATING INCOME & EXPENSE	$	(1,720,959	)	$	(6,503,811	)	$	(6,676,483	)	$	(3,933,697	)
OTHER INCOME & EXPENSES
16.	NON-OPERATING INCOME (ATT. LIST)
	Intercompany management fees from subsidiaries	$	101,216		$	(126,521	)
	TOTAL NON-OPERATING INCOME	$	101,216		$	(126,521	)
17.	NON-OPERATING EXPENSE (ATT. LIST)
	Banking fees and other	$	58,878		$	35,400		$	197,186		$	24,616
	Termination of interest rate swap	$	1,644,886
	Write-off of software development costs	$	366,231
	Intercompany management fee to Daisytek International	$	245,022
	TOTAL NON-OPERATING EXPENSE	$	2,315,017
18.	INTEREST EXPENSE	$	299,438		$	295,889		$	391,191		$	366,439
19.	DEPRECIATION / DEPLETION	$	204,853		$	253,528		$	254,050		$	252,551
20.	AMORTIZATION	$	259,028		$	296,174		$	292,358		$	290,951
21.	OTHER (ATTACH LIST)
	(GAIN)/LOSS on sale of DSI US				$	(18,653,312	)	$	(4,660	)	$	0
	OTHER				$	(690,690	)
22.	NET OTHER INCOME & EXPENSES	$	2,977,120		$	(18,589,532	)	$	1,130,125		$	934,557
REORGANIZATION EXPENSES
23.	PROFESSIONAL FEES (FROM SCHEDULE)	$	802,801		$	1,036,354		$	1,268,947		$	745,352
24.	U.S. TRUSTEE FEES	$	9,000		$	59,750		$	18,000		$	0
25.	OTHER (ATTACH LIST)
26.	TOTAL REORGANIZATION EXPENSES	$	811,801		$	1,096,104		$	1,286,947		$	745,352
27	INCOME TAX	$	(1,928,457	)	$	2,021,538		$	(3,068,997	)	$	(1,973,136	)
28.	NET PROFIT (LOSS)	$	(3,581,423	)	$	8,968,079		$	(6,024,558	)	$	(3,640,470	)

		Monthly Operating Report

CASE NAME:	Daisytek, Incorporated B.A. Pargh Company Virtual Demand, Inc.	ACCRUAL BASIS-3

CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96

		MONTH 5/7/03-5/31/03			MONTH June 30, 2003			MONTH July 31, 2003			MONTH August 31, 2003
CASH RECEIPTS AND DISBURSEMENTS
1.	CASH—BEGINNING OF MONTH	$	1,296,376		$	4,054,267		$	5,668,345		$	4,087,393
RECEIPTS FROM OPERATIONS
2.	CASH SALES
COLLECTION OF ACCOUNTS RECEIVABLE
3.	PREPETITION
4.	POSTPETITION	$	7,419,904		$	15,155,755		$	4,681,925		$	2,982,888
5.	TOTAL OPERATING RECEIPTS	$	7,419,904		$	15,155,755		$	4,681,925		$	2,982,888
NON—OPERATING RECEIPTS
6.	LOANS & ADVANCES (ATTACH LIST)
6a.	COLLECTION OF INCOME TAX REC.										$	4,373,149
7.	SALE OF ASSETS				$	7,287,602					$	1,025,000
8.	INTERCOMPANY TRANSFERS	$	(538,473	)	$	(5,260,361	)	$	172,466		$	1,624,933
9.	TOTAL NON-OPERATING RECEIPTS	$	(538,473	)	$	2,027,241		$	172,466		$	7,023,082
10.	TOTAL RECEIPTS	$	6,881,431		$	17,182,996		$	4,854,391		$	10,005,970
11.	TOTAL CASH AVAILABLE	$	8,177,807		$	21,237,263		$	10,522,736		$	14,093,363
OPERATING DISBURSEMENTS
12.	NET PAYROLL	$	528,761		$	769,113		$	493,080		$	632,185
13.	PAYROLL TAXES PAID	$	144,275		$	198,934		$	220,214		$	233,604
14	SALES, USE & OTHER TAXES PAID	$	20,107		$	48,212		$	0		$	0
15	SECURED / RENTAL / LEASES	$	350,329		$	618,450		$	0		$	493,159
16.	UTILITIES	$	202,838		$	135,249		$	72,022		$	145,066
17.	INSURANCE	$	37,905		$	82,381		$	8,337		$	0
18.	INVENTORY PURCHASES
19.	VEHICLE EXPENSES
20.	TRAVEL	$	6,637
21.	ENTERTAINMENT
22.	REPAIRS & MAINTENANCE
23.	SUPPLIES	$	189
24.	ADVERTISING
25	INTEREST				$	380,502
26	OTHER (ATTACH LIST)							$	442,839
	Other employee expenses										$	108,205
	Other operating expenses							$	81,245		$	172,871
	Flexible spending plan reimbursements										$	187,898
	Bank Reconciliation Items				$	293,046
	Bank Fees				$	382,833		$	8,022
	Paydown line of credit	$	2,832,500		$	12,335,441		$	3,806,359		$	4,502,127
26.	TOTAL OPERATING DISBURSEMENTS	$	4,123,540		$	15,244,160		$	5,132,118		$	6,475,115
REORGANIZATION EXPENSES
27.	PROFESSIONAL FEES				$	324,757		$	1,232,974		$	695,078
28.	U.S. TRUSTEE FEES							$	70,250		$	8,000
29.	OTHER (ATTACH LIST)
30.	TOTAL REORGANIZATION EXPENSES	$	0		$	324,757		$	1,303,224		$	703,078
31.	TOTAL DISBURSEMENTS	$	4,123,540		$	15,568,917		$	6,435,342		$	7,178,193
32.	NET CASH FLOW	$	2,757,891		$	1,614,079		$	(1,580,952	)	$	2,827,777
33.	CASH—END OF MONTH	$	4,054,267		$	5,668,345		$	4,087,393		$	6,915,170

		Monthly Operating Report

CASE NAME:	Daisytek, Incorporated B.A. Pargh Company Virtual Demand, Inc.	ACCRUAL BASIS-4

CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96

		SCHEDULE AMOUNT		MONTH 30-Jun-03		MONTH 31-Jul-03		MONTH 31-Aug-03
ACCOUNTS RECEIVABLE AGING
1.	0-30	$	16,882,250	$	1,063,688	$	1,105,402	$	(714,136	)
2.	31-60	$	1,733,157	$	3,789,793	$	372,107	$	1,230,157
3.	61-90	$	474,006	$	1,780,930	$	3,029,599	$	228,415
4.	91+	$	2,734,808	$	3,773,231	$	5,113,022	$	7,406,390
5.	TOTAL ACCOUNTS RECEIVABLE	$	21,824,221	$	10,407,642	$	9,620,130	$	8,150,826
6.	AMOUNT CONSIDERED UNCOLLECTIBLE	$	4,501,107	$	4,319,773	$	4,181,775	$	4,249,906
7.	ACCOUNTS RECEIVABLE (NET)	$	17,323,114	$	6,087,869	$	5,438,355	$	3,900,921

AGING OF POSTPETITION TAXES AND PAYABLES

MONTH:

August 31, 2003


		0-30 DAYS		31-60 DAYS		61-90 DAYS		91+ DAYS		TOTAL
TAXES PAYABLE
1.	FEDERAL	$	53,688	$	0	$	0	$	0	$	53,688
2.	STATE	$	161,290	$	0	$	0	$	0	$	161,290
3.	LOCAL	$	0	$	0	$	0	$	0	$	0
4.	OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0	$	0
5.	TOTAL TAXES PAYABLE	$	214,978	$	0	$	0	$	0	$	214,978

6.	ACCOUNTS PAYABLE	$	359,739	$	77,434	$	12,232	$	27,891	$	477,296
							*Rejected Leases		*Rejected Leases

STATUS OF POSTPETITION TAXES

MONTH:

August 31, 2003


		BEGINNING TAX LIABILITY*		AMOUNT WITHHELD AND/ 0R ACCRUED		AMOUNT PAID		ENDING TAX LIABILITY
FEDERAL
1.	WITHHOLDING**	$	56,312	$	121,872	$	140,285	$	37,899
2.	FICA-EMPLOYEE**	$	13,619	$	37,689	$	43,692	$	7,616
3.	FICA-EMPLOYER**	$	13,619	$	38,033	$	43,692	$	7,960
4.	UNEMPLOYMENT	$	172	$	582	$	541	$	213
5.	INCOME	$	0	$	0	$	0	$	0
6.	OTHER (ATTACH LIST)	$	0	$	0	$	0	$	0
7.	TOTAL FEDERAL TAXES	$	83,722	$	198,176	$	228,210	$	53,688
STATE AND LOCAL
8.	WITHHOLDING	$	821	$	2,890	$	2,835	$	876
9.	SALES	$	0	$	0	$	0	$	0
10.	EXCISE	$	0	$	0	$	0	$	0
11.	UNEMPLOYMENT	$	825	$	2,709	$	2,559	$	975
12.	REAL PROPERTY	$	0	$	0	$	0	$	0
13.	PERSONAL PROPERTY	$	22,986	$	129,807	$	0	$	152,793
14.	OTHER—Tennessee Corporation Annual Reports	$	0	$	6,646	$	0	$	6,646
15.	TOTAL STATE & LOCAL	$	24,632	$	142,052	$	5,394	$	161,290
16.	TOTAL TAXES	$	108,354	$	340,228	$	233,604	$	214,978

The beginning tax liability should represent the liability from the prior month or, if this is the first operating report, the amount should be zero.

Attach photocopies of IRS Form 6123 or your FTD coupon and payment receipt to verify payment or deposit.

		Monthly Operating Report

CASE NAME:	Daisytek, Incorporated B.A. Pargh Company Virtual Demand, Inc.	ACCRUAL BASIS-5

CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96

The debtor in possession must complete the reconciliation below for each bank account, including all general, payroll and tax accounts, as well as all savings and investment accounts, money market accounts, certificates of deposit, government obligations, etc. Accounts with restricted funds should be identified by placing an asterisk next to the account number. Attach additional sheets if necessary.

			MONTH:			August 31, 2003
BANK RECONCILIATIONS

		Account #1			Account #2		Account #3		Account #4		Account #5		Account #6		TOTAL
A.	BANK:		See Below—A			Guaranty		Chase		Bank of America		Bank One		Bank of America
B.	ACCOUNT NUMBER:		See Below—A			380-1466909		88006320428		3752175743		629438797		3752175772
C.	PURPOSE (TYPE):		See Below—A			Payroll/Benefits		Flex Plan		Petty Cash-Bksfld		Disbursement		Depository
1.	BALANCE PER BANK STATEMENT	$	7,264,602		$	309,742	$	18,218	$	0	$	0	$	0	$	7,592,562
2.	ADD: TOTAL DEPOSITS NOT CREDITED	$	0												$	0
3.	SUBTRACT: OUTSTANDING CHECKS	$	618,387		$	97,416	$	2,744							$	718,546
4.	OTHER RECONCILING ITEMS	$	(33,089	)	$	0	$	0					$	73,639	$	40,550
5.	MONTH END BALANCE PER BOOKS	$	6,613,126		$	212,326	$	15,474	$	0	$	0	$	73,639	$	6,914,565
6.	NUMBER OF LAST CHECK WRITTEN		208515


INVESTMENT ACCOUNTS

BANK, ACCOUNT NAME & NUMBER		DATE OF PURCHASE	TYPE OF INSTRUMENT	PURCHASE PRICE		CURRENT VALUE

7.
8.
9.
10.
11.	TOTAL INVESTMENTS			$	0	$	0

CASH

12.	CURRENCY ON HAND					$	605

13.	TOTAL CASH—END OF MONTH					$	6,915,170

Note A:

Daisytek performs a consolidated bank reconciliation. The following is the listing of bank accounts included in this reconciliation:

Bank	Account #	Purpose	Balance per Bank
Bank of America	3752175714	Master Funding	684,126
Bank of America	3752190663	Prof Fee Segr Acct	1,954,640
Bank of America	3752175808	Master Collections	2,508,903
Bank One	10-91081	Accts Payable	2,053,396
Bank One	633680996	Disbursement	44,365
Bank One	11-28503	Master Collections	0
Chase	88-05174651	Operating	17,848
Frost Nat’l Bank	966003966	Emp Benefits	0
Bank One	1571581485	Master Depository	1,323

			7,264,602

Note B: Account #2—Item 6—Last Check Written:

Payroll Manual Checks—Last Check# is 4011.

Payroll Computer Checks—last Check# is 300070.

		Monthly Operating Report

CASE NAME:	Daisytek, Incorporated B.A. Pargh Company Virtual Demand, Inc.	ACCRUAL BASIS-6

CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96
		MONTH: August 31, 2003

PAYMENTS TO INSIDERS AND PROFESSIONALS

OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS (AS DEFINED IN SECTION 101 (31) (A)-(F) OF THE U.S. BANKRUPTCY CODE) AND TO PROFESSIONALS. ALSO, FOR PAYMENTS TO INSIDERS, IDENTIFY THE TYPE OF COMPENSATION PAID (e.g. SALARY, BONUS, COMMISSIONS, INSURANCE, HOUSING ALLOWANCE, TRAVEL, CAR ALLOWANCE, ETC.). ATTACH ADDITIONAL SHEETS IF NECESSARY.

INSIDERS

NAME		TYPE OF PAYMENT	AMOUNT PAID		TOTAL PAID TO DATE
1.	Dale Booth	Salary	$	23,912	$	153,892
2.	Ralph Doherty	Salary	$	74,868	$	120,808
3.	Jack Kearney	Salary	$	21,969	$	87,877
4.	Eric Logan	Salary	$	13,606	$	59,548
5.	Peter Wharf	Salary	$	40,837	$	86,779
6.	TOTAL PAYMENTS TO INSIDERS		$	175,191	$	508,904

PROFESSIONALS

NAME		DATE OF COURT ORDER AUTHORIZING PAYMENT	AMOUNT APPROVED		AMOUNT PAID		TOTAL PAID TO DATE		TOTAL INCURRED & UNPAID *
1.	Vinson & Elkins		$	1,585,987	$	311,487	$	1,113,434	$	472,554
2.	FTI	n/a	$	267,574	$	248,224	$	242,574	$	25,000
3.	Rochelle Elrod Hutcheson	n/a	$	317,474	$	111,205	$	234,557	$	82,917
4.	Deloitte & Touche	n/a	$	694,163	$	0	$	394,163	$	300,000
5	Kirkpatrick&Lockhart	n/a			$	24,163
6	US Trustee	n/a	$	70,250	$	8,000	$	70,250	$	0
7	Houlihan	n/a	$	100,000			$	100,000	$	0
8	TOTAL PAYMENTS TO PROFESSIONALS		$	3,035,448	$	703,078	$	2,154,977	$	880,471

INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED

POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE

PROTECTION PAYMENTS

NAME OF CREDITOR		SCHEDULED MONTHLY PAYMENTS DUE	AMOUNTS PAID DURING MONTH	TOTAL UNPAID POSTPETITION
1.	L&B Depp Entreprises II	130,332.81	130,332.81	0.00
2.	Tejon Dermody Industrial (Augst 1/2 month)	92,756	46,378	46,377.82
3.	New York Life Southpark (August 1/2/ month)	122,908	61,453.85	61,453.85
4.	Selkirk Ventures (August 1/2/ month)	130,095	130,095	0.00
5.	Proterra Properties	Out of Facility
6.	MRE, Inc	185	0.00	185.00
7	Bank One Texas Leasing Corp	897	0.00	896.56
8.	Raymond Leasing (Sch 82369)	3,281	0.00	3,280.75
9.	Raymond Leasing (Sch 823610)	997	0.00	996.64

ACCRUAL BASIS - 6

10.	Raymond Leasing (Sch 823611)	235.00	0.00	235.00
11.	Raymond Leasing (Sch 823613)	1,937.80	0.00	1,937.80
12.	Raymond Leasing (Sch 82614)	3,759.30	0.00	3,759.30
13.	American Business Machines Co	98.67	0.00	98.67
14.	Canon Financial Services	363.51	0.00	363.51
15.	GATX Schedule #10	7,567.77	0.00	7,567.77
16.	GATX Schedule #1	6,213.83	0.00	6,213.83
17.	IOS Capital Inc	667.54	0.00	667.54
18.	IOS Capital Inc	8,579.46	0.00	8,579.46
19.	IOS Capital Inc	525.00	0.00	525.00
20.	Deutsche Financial Services Corporation	6,515.54	0.00	6,515.54
21.	Wells Fargo Equipment Finance	14,165.00	0.00	14,165.00
22	GE Public Finance, Inc Schedule 1	22,655.91	0.00	22,655.91
23	GE Public Finance, Inc Schedule 2	15,304.19	0.00	15,304.19
24	GE Public Finance, Inc Schedule 3	9,550.97	0.00	9,550.97
25.	CitiCorp Del—Lease Inc	363.51	0.00	363.51
26.	General Electric Capital Corporation Sch 2	6,767.19	0.00	6,767.19
27.	General Electric Capital Corporation Sch 3	109,952.08	0.00	109,952.08
28.	General Electric Capital Corporation Sch 4	13,774.08	0.00	13,774.08
29.	General Electric Capital Corporation Sch 5	24,685.45	0.00	24,685.45
30.	General Electric Capital Corporation Sch 6	47,090.79	0.00	47,090.79
31.	General Electric Capital Corporation Sch 7	9,709.96	0.00	9,709.96
32.	General Electric Capital Corporation Sch 8	16,504.55	0.00	16,504.55
33.	General Electric Capital Corporation Sch 9	7,867.78	0.00	7,867.78
34.	General Electric Capital Corporation Sch 10	10,270.06	0.00	10,270.06
35.	General Electric Capital Corporation Sch 11	4,994.75	0.00	4,994.75
36.	Fleet Capital Corporation Schedule 34049-001	18,092.65	0.00	18,092.65
37.	Fleet Capital Corporation Schedule 34049-00902	1,037.22	0.00	1,037.22
38.	Fleet Capital Corporation Schedule 32585-002	13,543.97	0.00	13,543.97
39.	Fleet Capital Corporation Schedule 32585-003	19,936.19	0.00	19,936.19
40.	Fleet Capital Corporation Schedule 32585-004	1,431.20	0.00	1,431.20
41.	IBM Credit Corporation Schedule 001	1,264.00	0.00	1,264.00
42.	IBM Credit Corporation Schedule 002	1,264.00	0.00	1,264.00
43.	IBM Credit Corporation Schedule 003	1,264.00	0.00	1,264.00
44.	IBM Credit Corporation Schedule 004	1,264.00	0.00	1,264.00
45.	IBM Credit Corporation Schedule 005	221.00	0.00	221.00
46.	IBM Credit Corporation Schedule 006	221.00	0.00	221.00
47.	IBM Credit Corporation Schedule 007	775.00	0.00	775.00
48.	IBM Credit Corporation Schedule 008	908.00	0.00	908.00
49.	IBM Credit Corporation Schedule 009	3,073.00	0.00	3,073.00
50.	IBM Credit Corporation Schedule 010	475.00	0.00	475.00
51.	IBM Credit Corporation Schedule 011	810.00	0.00	810.00
52.	IBM Credit Corporation Schedule 012	1,334.00	0.00	1,334.00
53.	IBM Credit Corporation Schedule 013	3,528.00	0.00	3,528.00
54.	IBM Credit Corporation Schedule 014	4,922.00	0.00	4,922.00
55.	IBM Credit Corporation Schedule 015	10,266.00	0.00	10,266.00
56.	IBM Credit Corporation Schedule 016	1,765.00	0.00	1,765.00
57.	IBM Credit Corporation Schedule 017	2,839.00	0.00	2,839.00
58.	IBM Credit Corporation Schedule 018	4,193.00	0.00	4,193.00
59.	IBM Credit Corporation Schedule 019	22,426.00	0.00	22,426.00
60.	IBM Credit Corporation Schedule 020	37,838.00	0.00	37,838.00
61.	IBM Credit Corporation Schedule 021	9,350.00	0.00	9,350.00
62.	IBM Credit Corporation Schedule 022	1,169.00	0.00	1,169.00
63	Plano Parkway Self Storage (July and August)	400.00	400.00	0.00

General Electric Capital Corporation (Adequate Protection Payment)		102,000.00	102,000.00	0.00
GE Public Finance, Inc (Adequate Protection Payment)		22,500.00	22,500.00	0.00

6.	TOTAL	1,121,680.02	493,159.48	628,520.54

ACCRUAL BASIS - 6

		Monthly Operating Report

CASE NAME:	Daisytek, Incorporated B.A. Pargh Company Virtual Demand, Inc.	ACCRUAL BASIS-7

CASE NUMBER:	03-34762-HDH-11	02/13/95, RWD, 2/96
		MONTH: August 31, 2003

QUESTIONNAIRE 6/1/03-6/26/03

		YES	NO
1.	HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD?	X
2.	HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT?		X
3.	ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES?		X
4.	HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES THIS REPORTING PERIOD?	X
5.	HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE DEBTOR FROM ANY PARTY?		X
6.	ARE ANY POSTPETITION PAYROLL TAXES PAST DUE?		X
7.	ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES PAST DUE?		X
8.	ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE?		X
9.	ARE ANY OTHER POSTPETITION TAXES PAST DUE?		X
10.	ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS DELINQUENT?		X
11.	HAVE ANY PREPETITION TAXES BEEN PAID DURING THE REPORTING PERIOD?		X
12.	ARE ANY WAGE PAYMENTS PAST DUE?		X

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS “YES,” PROVIDE A DETAILED EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.

Question 1 Support: Intangible Assets sold to buyer—received $1,025,000.00 on 8/29.

INSURANCE

		YES	NO
1.	ARE WORKER’S COMPENSATION, GENERAL LIABILITY AND OTHER NECESSARY INSURANCE COVERAGES IN EFFECT?	X
2.	ARE ALL PREMIUM PAYMENTS PAID CURRENT?	X
3.	PLEASE ITEMIZE POLICIES BELOW.

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS “NO,” OR IF ANY POLICIES HAVE BEEN CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN EXPLANATION BELOW. ATTACH ADDITIONAL SHEETS IF NECESSARY.

INSTALLMENT PAYMENTS

TYPE OF POLICY	CARRIER	PERIOD COVERED	PAYMENT AMOUNT & FREQUENCY
Property	Royal Indemnity Company	5/1/03 - 5/1/04	$	409,804	annual
General Liability	St. Paul Fire & Marine Insurance Company	5/1/03 - 5/1/04	$	75,084	annual
Business Auto	St. Paul Fire & Marine Insurance Company	5/1/03 - 5/1/04	$	57,345	annual
Workers’ Compensation	St. Paul Fire & Marine Insurance Company	5/1/03 - 5/1/04	$	297,172	annual
Cargo	Indemnity Insurance Company of North America	5/1/03 - 5/1/04	$	108,500	annual
Umbrella Liability (primary layer)	St. Paul Fire & Marine Insurance Company	5/1/03 - 5/1/04	$	50,974	annual
Umbrella Liability (excess layer)	Federal Insurance Co.	5/1/03 - 5/1/04	$	30,300	annual
Fiduciary Liability	Federal Insurance Co.	4/1/03 - 4/1/04	$	9,000	annual
Primary Directors & Officers	National Union Fire Insurance Company	4/1/03 - 4/1/04	$	1,100,000	annual
Excess D&O (1st layer)	XL Specialty Insurance Co.	4/1/03 - 4/1/04	$	1,250,000	annual
Extended Reporting Period Purchased Excess D&O (1st layer)	St. Paul Mercury Insurance Company	4/1/03 - 4/1/04	$	354,375	annual
Extended Reporting Period Purchased Excess D&O (2nd layer)	Twin City Fire Insurance Company	4/1/03 - 4/1/04	$	187,500	annual
Crime	Gulf Insurance Company	4/1/03 - 4/1/04	$	27,250	annual


CASE NAME:		Daisytek, Incorporated B.A. Pargh Company Virtual Demand, Inc.

CASE NUMBER:		03-34762-HDH-11

July 31, 2003

MOR 7, QUESTION 4 SUPPORT

	AMERICAN WATER	$	157.45
	GHA TECHNOLOGIES	$	362.90
	MAVERICK TRADING CO	$	1,367.83
	TXU ELECTRIC “TDA”	$	86.03
**	Xerox Corp. OmniFax		1,480.00
**	International Laser—AP/AR Offset		266,083.30
**	Royal Consumer		8,959.90

			278,497.41

Court Approved Contra-AR and AP adjustments