Table 1 Collected Financial Reports

CASH IN
(DOLLARS)

CASH OUT
(DOLLARS)

DATE 1998 to 2001 1999 2000 Saved taxes.

SOURCE

1,000,000,000 (65,000,000) 278,000,000 382,000,000 (1.5 Billion)

Projected profit deal of natural-gas sales from South American pipeline project. Collected tax refund converted to stocks. Collected tax refunds from 900 subsidiaries. Reported before-tax profit, partnerships excluded. Actual before-tax profit with consolidated Raptors financial statement. Worth of stocks transferred to Enron from another partnership. Skilling cash out Ken Lay cashed out before the plane crash. Projected profit deal.

2000 Q3 to 2001 Q3 429,000,000 700,000,000 14, 480,755 37,683,887 (350,000,000) 112,000,000 544,000,000 September 28, 2001 March, 2001 August, 2001 September 11, 2001

Taken from arranged purchases between and Enron and Qwest. Announced after-tax charge against earnings related with partnership transactions. Answered to phone interview, one-time loss in equity acknowledged to Raptors as "shareholder equity". Andrew Fastow, Chief Financing Officer, cash out as far as anyone can determine. Said unrevised net income from 1997-2001 financial statement - subject for revision. 1 Million a week payment to Arthur Andersen accounting firm for 10 years.

October, 2001

1.2 Billion

October 16, 2001

45,000, 000 (1 Billion) 520,000,000

October, 2001 November, 2001 1990 - 2000

We may wonder how the executives hid the off-the-book profits and cash-in payments done in partnership dealings, but from the table above, it may be visible how the Enron culture intends the business to run in 15 years of operation. Table 1 shows collected financial reports publicized by Enron, tabularized in accounting T-format to easier see the operational cash flow. As can be seen, there were more cash coming into the account of Enron than cash being flowed out to shareholders except the amounts visibly withdrawn by top executives. Furthermore, the declared net income, which is still subject for revision, from year 1997 to 2001, could already be paid out to the billion loss in equity. This probable high imbalance of cash flows suggests that unreported income, mostly from partnership transactions, may clear the statement if added against the alleged tax-charge and loss. Nonetheless, from the given reports, saved amount from taxes alone for four years, as no record of tax payment had resurfaced but refunds, could already salvage the same year expenses. Hence, it could really be penalizing if all financial records resurfaced resulting to probable arrests of every entity involved to this possible great acts of swindling.

Figure 1. Latest Stand of Enron Stock If the majority can also monitor the direction of stock, then anyone could make positive or negative counteraction, but this is unlikely to be the culture built in Enron, and executives could hardly permit such transparency. Figure 1 shows values of Enron stock in more than a year. As can be seen, the stand dropped from its high-point in September 2000 to declaration of bankruptcy on December 2, 2001. This alarming drop was concealed to investors, and seemed to be the right opportunity for the executives to believe that Enron may last only up to the year of 2001. As a result, the value further plummeted from made withdrawals and maybe more claims of executives. On the other hand, long-term contracts drafted to 900 subsidiaries around the world, and selling diversified commodities did not helped the general investors.