Form 10-Q

                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                    |X|    Quarterly Report Pursuant to Section 13 or 15(d) of
                           the Securities Exchange Act of 1934.
                           For the quarterly period ended June 30, 1997

                    |_|    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 0-21552

                      ATEL Cash Distribution Fund IV, L.P.
             (Exact name of registrant as specified in its charter)

   California                                                94-3145429
(State or other jurisdiction of                              (I. R. S. Employer
incorporation or organization)                               Identification No.)

           235 Pine Street, 6th Floor, San Francisco, California 94104
                    (Address of principal executive offices)

        Registrant's telephone number, including area code: (415)989-8800



Indicate  by a 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.

                                     Yes |X|
                                     No |_|

                       DOCUMENTS INCORPORATED BY REFERENCE

                                      None


<PAGE>

                          Part I FINANCIAL INFORMATION

Item 1.               Financial Statements.


<PAGE>

                      ATEL CASH DISTRIBUTION FUND IV, L.P.

                                 BALANCE SHEETS

                       JUNE 30, 1997 AND DECEMBER 31, 1996
                                   (Unaudited)


                                     ASSETS

                                                     1997             1996
                                                     ----             ----

Cash and cash equivalents                            $253,294         $696,421

Accounts receivable                                 3,688,935          633,329

Investments in leases                              34,279,086       52,264,526
                                              ---------------- ----------------
                                                  $38,221,315      $53,594,276
                                              ================ ================


                        LIABILITIES AND PARTNERS' CAPITAL


Non-recourse debt                                 $10,600,226      $20,450,921

Lines of credit                                       500,000        1,500,000

Accounts payable:
   Equipment purchases                                      -           42,227
   General partners                                    63,091           74,487
   Other                                              130,195          138,590

Deposit due to lessee                                       -           97,772

Accrued interest payable                               53,813           96,904

Unearned operating lease income                       315,600          463,160
                                              ---------------- ----------------
Total liabilities                                  11,662,925       22,864,061

Partners' capital:
     General partners                                  78,190           67,497
     Limited partners                              26,480,200       30,662,718
                                              ---------------- ----------------
Total partners' capital                            26,558,390       30,730,215
                                              ---------------- ----------------
                                                  $38,221,315      $53,594,276
                                              ================ ================

                             See accompanying notes.


<PAGE>

                      ATEL CASH DISTRIBUTION FUND IV, L.P.

                                INCOME STATEMENTS

                        SIX AND THREE MONTH PERIODS ENDED
                             JUNE 30, 1997 AND 1996
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                               Six Months                       Three Months
                                                             Ended June 30,                    Ended June 30,
                                                         1997             1996             1997             1996
Revenues:
Lease revenues:
<S>                                                      <C>              <C>              <C>              <C>
   Operating leases                                      $3,911,379       $5,187,709       $1,615,492       $2,455,382
   Direct financing leases                                  567,157          593,495          275,030          302,313
   Leveraged leases                                         124,026           94,266           62,013           47,133
Gain on sale of assets                                    1,104,635          790,390          577,280          757,992
Interest income                                              16,958           11,665            6,716            4,362
Other income                                                  1,142            2,601                -            1,679
                                                    ---------------- ---------------- ---------------- ----------------
                                                          5,725,297        6,680,126        2,536,531        3,568,861
Expenses:
Depreciation                                              2,747,687        3,798,393        1,191,244        1,898,714
Interest                                                    681,579          986,666          248,204          481,182
Amortization                                                513,600          248,713          321,582          120,238
Equipment and incentive management fees                     413,307          483,298          208,282          260,607
Administrative cost reimbursements                          140,256          116,694           70,355           70,874
Other                                                        86,793           58,388           66,388           37,927
Provision for losses                                         57,231           66,796           25,343           35,689
Professional fees                                            15,512           23,261           10,641           16,401
                                                    ---------------- ---------------- ---------------- ----------------
                                                          4,655,965        5,782,209        2,142,039        2,921,632
                                                    ---------------- ---------------- ---------------- ----------------
Net income                                               $1,069,332         $897,917         $394,492         $647,229
                                                    ================ ================ ================ ================
Net income:
     General partners                                       $10,693           $8,979           $3,945           $6,472
     Limited partners                                     1,058,639          888,938          390,547          640,757
                                                    ---------------- ---------------- ---------------- ----------------
                                                         $1,069,332         $897,917         $394,492         $647,229
                                                    ================ ================ ================ ================

Net income per limited partnership unit                       $0.14            $0.12            $0.05            $0.09
Weighted average number of units
   outstanding                                            7,487,350        7,488,100        7,487,350        7,487,350

</TABLE>
                             See accompanying notes.

<PAGE>

                      ATEL CASH DISTRIBUTION FUND IV, L.P.

                    STATEMENT OF CHANGES IN PARTNERS' CAPITAL

                      SIX MONTH PERIOD ENDED JUNE 30, 1997
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                    Limited Partners      General
                                                         Units           Amount          Partners           Total
<S>                                                       <C>            <C>                  <C>          <C>
Balance December 31, 1996                                 7,487,350      $30,662,718          $67,497      $30,730,215
Distributions to limited partners                                         (5,241,157)               -       (5,241,157)
Net income                                                                 1,058,639           10,693        1,069,332
                                                    ---------------- ---------------- ---------------- ----------------
Balance June 30, 1997                                     7,487,350      $26,480,200          $78,190      $26,558,390
                                                    ================ ================ ================ ================
</TABLE>

                             See accompanying notes.

<PAGE>

                      ATEL CASH DISTRIBUTION FUND IV, L.P.

                            STATEMENTS OF CASH FLOWS

                        SIX AND THREE MONTH PERIODS ENDED
                             JUNE 30, 1997 AND 1996
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                               Six Months                       Three Months
                                                             Ended June 30,                    Ended June 30,
                                                         1997             1996             1997             1996
Operating activities:
<S>                                                     <C>               <C>              <C>               <C>
Net income                                               $1,069,332         $897,917         $394,492         $647,229
Adjustments  to  reconcile  net  income  to  net  
   cash  (used  in)  provided  by
   operations:
   Depreciation                                           2,747,687        3,798,393        1,191,244        1,898,714
   Amortization                                             513,600          248,713          321,582          120,238
   Leveraged lease income                                  (124,026)         (94,266)        (124,026)         (50,851)
   Gain on sale of assets                                (1,104,635)        (790,390)        (577,280)        (757,992)
   Provision for losses                                      57,231           66,796           25,343           35,689
     Changes in operating assets and liabilities:
        Accounts receivable                              (3,055,606)         160,661       (3,174,611)         189,554
        Notes receivable                                          -           67,511                -           33,755
        Bank overdrafts                                           -                -                -         (334,627)
        Accounts payable, general partner                   (11,396)         (59,579)          (4,127)          41,084
        Accounts payable, other                              (8,395)         (86,794)          12,781          (23,604)
        Accrued interest payable                            (43,091)          17,365          (11,536)          36,117
        Deposits due to lessees                             (97,772)        (771,024)               -                -
        Unearned operating lease income                    (147,560)         (95,445)        (154,464)         (56,467)
                                                    ---------------- ---------------- ---------------- ----------------
Net cash (used in) from operations                         (204,631)       3,359,858       (2,100,602)       1,778,839
                                                    ---------------- ---------------- ---------------- ----------------

Investing activities:
Proceeds from sales of assets                            14,368,852        2,152,220        9,605,818        1,515,825
Reduction in investment in direct financing
   leases                                                 1,426,678        1,719,468          696,809          695,706
Reduction in investment in leveraged leases                 177,571           13,007           82,492           13,007
Purchase of equipment on direct financing
   leases                                                   (77,518)        (898,949)               -                -
Purchase of equipment on operating leases                   (42,227)      (1,569,753)               -           42,228
                                                    ---------------- ---------------- ---------------- ----------------

Net cash provided by investing activities                15,853,356        1,415,993       10,385,119        2,266,766
                                                    ---------------- ---------------- ---------------- ----------------
</TABLE>
<PAGE>

                      ATEL CASH DISTRIBUTION FUND IV, L.P.

                            STATEMENTS OF CASH FLOWS
                                   (Continued)

                        SIX AND THREE MONTH PERIODS ENDED
                             JUNE 30, 1997 AND 1996
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                               Six Months                       Three Months
                                                             Ended June 30,                    Ended June 30,
                                                         1997             1996             1997             1996
<S>                                                     <C>               <C>              <C>               <C>
Financing activities:
Payments of non-recourse debt                            (9,850,695)      (3,167,640)      (6,213,264)      (1,660,045)
Distributions to limited partners                        (5,241,157)      (5,149,515)      (2,620,581)      (2,619,728)
Repayment of line of credit                              (1,000,000)               -         (500,000)               -
Borrowings under lines of credit                                  -        2,500,000                -          500,000
Repurchase of units                                               -           (2,929)               -           (2,929)
                                                    ---------------- ---------------- ---------------- ----------------
Net cash (used in) provided by financing
   activities                                           (16,091,852)      (5,820,084)      (9,333,845)      (3,782,702)
                                                    ---------------- ---------------- ---------------- ----------------
Net (decrease) increase in cash and cash
   equivalents                                             (443,127)      (1,044,233)      (1,049,328)         262,903
Cash at beginning of period                                 696,421        1,355,258        1,302,622           48,122
                                                    ================ ================ ================ ================
Cash at end of period                                      $253,294         $311,025         $253,294         $311,025
                                                    ================ ================ ================ ================

Supplemental disclosures of cash flow information:

Cash paid during period for interest                       $724,670         $969,301         $200,434         $445,065
                                                    ================ ================ ================ ================


Supplemental schedule of non-cash transactions:

Operating lease assets reclassified to assets
   held or sale or lease                                                    $133,552
                                                                     ================
</TABLE>



                             See accompanying notes.

<PAGE>

                      ATEL CASH DISTRIBUTION FUND IV, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                                  JUNE 30, 1997
                                   (Unaudited)


1. Summary of significant accounting policies:

Interim financial statements:

The unaudited interim financial statements reflect all adjustments which are, in
the opinion of the general partners,  necessary to a fair statement of financial
position and results of operations for the interim periods  presented.  All such
adjustments are of a normal recurring nature.  These unaudited interim financial
statements  should be read in  conjunction  with the most recent  report on Form
10K.


2. Organization and partnership matters:

ATEL Cash  Distribution  Fund IV, L.P. (the  Partnership),  was formed under the
laws of the State of  California  on  September  19,  1991,  for the  purpose of
acquiring  equipment  to  engage in  equipment  leasing  and  sales  activities.
Contributions in the aggregate of $600 were received as of October 8, 1991, $100
of which  represented the General  Partner's  continuing  interest,  and $500 of
which represented the Initial Limited Partners' capital investment.

Upon the sale of the  minimum  amount of Units of Limited  Partnership  interest
(Units) of $1,200,000 and the receipt of the proceeds  thereof on March 6, 1992,
the Partnership commenced operations.  The Fund or the General Partner on behalf
of the Fund, will incur costs in connection with the organization,  registration
and  issuance  of the Units.  The amount of such costs to be born by the Fund is
limited by certain provisions in the Agreement of Limited Partnership.

As of  February  3, 1993,  the Fund had  received  subscriptions  for  7,500,000
Limited  Partnership  Units  ($75,000,000)  in addition  to the Initial  Limited
Partners' 50 Units and the Partnership's offering was closed.

The Partnership's business consists of leasing various types of equipment. As of
June 30, 1997, the original terms of the leases was from two to eight years.




<PAGE>

                      ATEL CASH DISTRIBUTION FUND IV, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                                  JUNE 30, 1997
                                   (Unaudited)


3. Investment in leases:

The Partnership's investment in leases consists of the following:

<TABLE>
<CAPTION>
                                                                       Depreciation
                                                                       Expense or        Reclass-
                                   December 31,                       Amortization     ifications &       June 30,
                                       1996            Additions        of Leases      Dispositions         1997
                                       ----            ---------        ---------     --------------        ----
<S>                                    <C>                  <C>          <C>             <C>               <C>
Net investment in operating
   leases                              $33,943,386                       ($2,747,687)    ($12,349,406)     $18,846,293
Net investment in direct
   financing leases                     11,855,610          $77,518       (1,426,678)        (884,146)       9,622,304
Net investment in leveraged
   leases                                4,844,014                -          (53,545)               -        4,790,469
Residual value interests                   610,878                -                -          (28,821)         582,057
Equipment held for lease                    16,464                -                -           (1,444)          15,020
Initial direct costs, net of
   accumulated amortization
   of $1,365,512 in 1996 and
   $1,132,774 in 1997                    1,300,152                -         (513,600)            (400)         786,152
Reserve for losses                        (305,978)         (57,231)               -                -         (363,209)
                                ------------------- ---------------- ---------------- ---------------- ----------------
                                       $52,264,526          $20,287      ($4,741,510)    ($13,264,217)     $34,279,086
                                =================== ================ ================ ================ ================
</TABLE>

The following  schedule provides an analysis of the Partnership's  investment in
property on operating leases by major  classifications  as of December 31, 1996,
acquisitions and dispositions  during the quarters ended March 31, 1997 and June
30, 1997 and as of June 30, 1997.

<TABLE>
<CAPTION>
                                                                                      Acquisitions &
                                                     December 31,                      Dispositions       June 30,
                                                         1996          1st Quarter      2nd Quarter         1997
                                                         ----          -----------      -----------         ----
<S>                                                     <C>              <C>              <C>              <C>
Transportation                                          $21,497,670      ($7,105,011)        ($26,223)     $14,366,436
Corporate aircraft                                        9,635,969       (1,890,000)               -        7,745,969
Printing                                                  4,393,249                -                -        4,393,249
Other                                                     4,726,040                -       (1,708,303)       3,017,737
Manufacturing                                             1,587,670                -                -        1,587,670
Ground support equipment                                  1,127,988                -                -        1,127,988
Mining                                                    4,347,960                -       (3,347,960)       1,000,000
Data processing                                             851,561                -                -          851,561
Office equipment                                            216,080                -                -          216,080
Materials handling                                        3,915,999                -       (3,915,999)               -
Construction equipment                                    4,985,297                -       (4,985,297)               -
                                                    ---------------- ---------------- ---------------- ----------------
                                                         57,285,483       (8,995,011)     (13,983,782)      34,306,690
Less accumulated depreciation                           (23,342,097)       3,234,447        4,647,253      (15,460,397)
                                                    ---------------- ---------------- ---------------- ----------------
                                                        $33,943,386      ($5,760,564)     ($9,336,529)     $18,846,293
                                                    ================ ================ ================ ================
</TABLE>



<PAGE>

                      ATEL CASH DISTRIBUTION FUND IV, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                                  JUNE 30, 1997
                                   (Unaudited)


3. Investments in leases (continued):

All of the property on operating  leases was acquired during 1992,  1993,  1994,
1995, 1996 and 1997.

At June 30, 1997, the aggregate  amounts of future minimum lease payments are as
follows:

                Year ending      Direct
                December 31,     Financing        Operating          Total
                       1997       $1,778,905       $2,912,529       $4,691,434
                       1998        3,213,362        4,839,307        8,052,669
                       1999        2,221,426        3,987,706        6,209,132
                       2000        1,313,630        1,751,703        3,065,333
                       2001          808,909        1,203,959        2,012,868
                 Thereafter          394,796        1,503,753        1,898,549
                             ---------------- ---------------- ----------------
                                  $9,731,028      $16,198,957      $25,929,985
                             ================ ================ ================


4. Non-recourse debt:

Notes payable to financial  institutions are due in varying  monthly,  quarterly
and semi-annual installments of principal and interest. The notes are secured by
assignments  of lease  payments and pledges of the assets  which were  purchased
with the proceeds of the particular notes. Interest rates on the notes vary from
6.25% to 10.57%.

Future minimum principal payments of long-term  non-recourse debt as of June 30,
1997 are as follows:

                Year ending
                December 31,     Principal        Interest           Total
                       1997       $1,844,634         $391,078       $2,235,712
                       1998        3,165,268          580,968        3,746,236
                       1999        2,982,139          332,906        3,315,045
                       2000        1,553,973          151,791        1,705,764
                       2001          697,282           56,062          753,344
                 Thereafter          356,930           22,731          379,661
                             ---------------- ---------------- ----------------
                                 $10,600,226       $1,535,536      $12,135,762
                             ================ ================ ================


<PAGE>

                      ATEL CASH DISTRIBUTION FUND IV, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                                  JUNE 30, 1997
                                   (Unaudited)


5.  Related party transactions:

The terms of the  Agreement  of Limited  Partnership  provide  that the  General
Partners  and/or  Affiliates are entitled to receive  certain fees for equipment
acquisition, management and resale and for management of the Partnership.

The General Partners and/or  Affiliates  earned the following fees,  commissions
and reimbursements, pursuant to the Limited Partnership Agreement as follows:

                                                     1997             1996
                                                     ----             ----
Reimbursement of administrative costs                $140,256         $116,694

Incentive and equipment management fees               413,307          483,298
                                              ---------------- ----------------
                                                     $553,563         $599,992
                                              ================ ================

The amounts  above are gross  amounts  incurred by the General  Partners  and/or
Affiliates, including commissions to broker-dealers for the sales of Partnership
Units.


6. Partner's capital:

The Fund is  authorized  to issue up to 7,500,000  Units of Limited  Partnership
interest in addition to the Initial Limited Partners.

The Fund's Net Profits,  Net Losses and Tax Credits are to be  allocated  99% to
the Limited Partners and 1% to the General Partners.

As more fully described in the Agreement of Limited Partnership,  available Cash
from  Operations  and Cash from Sales or  Refinancing  shall be  distributed  as
follows:

     First, 5% of  Distributions  of Cash from Operations to the General Partner
          as Incentive Management Fees.

     Second, the balance to the Limited Partners until the Limited Partners have
          received aggregate  Distributions,  as defined,  in an amount equal to
          their  Original  Invested  Capital,  as defined,  plus a 10% per annum
          cumulative  (compounded  daily)  return  on  their  Adjusted  Invested
          Capital, as defined.




<PAGE>

                      ATEL CASH DISTRIBUTION FUND IV, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                                  JUNE 30, 1997
                                   (Unaudited)


6. Partner's capital (continued):

     Third,  the General Partner will receive as Incentive  Management Fees, the
          following:

           (A) 10% of remaining Cash from Operations, as defined,

           (B) 15% of remaining Cash from Sales or Refinancing, as defined.

     Fourth, the balance to the Limited Partners.


7.  Line of credit:

The  Partnership  participates  with the  General  Partner  and  certain  of its
Affiliates in a $90,000,000 revolving credit agreement with a group of financial
institutions  which  expires on October  28,  1997.  The  agreement  includes an
acquisition  facility to be used by the  Partnership  and  Affiliates to provide
bridge financing for assets on leases.  Draws on the acquisition facility by any
individual  borrower  are  secured  only by that  borrower's  assets,  including
equipment and related leases.

At June 30, 1997, the Partnership  had $500,000 of borrowings  under the line of
credit.

The credit agreement  includes certain  financial  covenants  applicable to each
borrower.  The  Partnership  was in compliance with its covenants as of June 30,
1997.












<PAGE>

Item 2.               MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                      FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Capital Resources and Liquidity

Funds which have been  received,  but which have not yet been invested in leased
equipment, are invested in interest-bearing accounts or  high-quality/short-term
commercial paper. The Partnership's public offering provided for a total maximum
capitalization  of  $75,000,000.  As of February 3, 1992,  the  Partnership  had
received and accepted subscriptions for a total of 7,500,000 Units ($75,000,000)
and the offering was closed.

The  Partnership's  primary source of liquidity during 1996 were lease revenues,
proceeds from the sales of lease assets and borrowings under the line of credit.
The  liquidity of the  Partnership  will vary in the future,  increasing  to the
extent cash flows from leases exceed  expenses,  and  decreasing as lease assets
are  acquired,  as  distributions  are made to the limited  partners  and to the
extent expenses exceed cash flows from leases.

The Partnership currently has available adequate reserves to meet contingencies,
but in the event those  reserves were found to be  inadequate,  the  Partnership
would  likely be in a position to borrow  against its current  portfolio to meet
such  requirements.  The general  partner  envisions  no such  requirements  for
operating purposes.

The  Partnership  participates  with the  General  Partner  and  certain  of its
affiliates  in  a  $90,000,000   revolving  line  of  credit  with  a  financial
institution. The line of credit expires on October 28, 1997.

As of June 30, 1997, the  Partnership  had borrowed  approximately  $38,342,000,
with  a  remaining   unpaid  balance  of  $10,600,226.   Borrowings  are  to  be
non-recourse to the  Partnership,  that is, the only recourse of the lender will
be to the  equipment or  corresponding  lease  acquired or secured with the loan
proceeds.  The general partner  expects that aggregate  borrowings in the future
will be  approximately  40% of  aggregate  equipment  cost.  In any  event,  the
Agreement of Limited Partnership limits such borrowings to 40% of the total cost
of equipment, in aggregate.

No  commitments  of capital  have been or are expected to be made other than for
the acquisition of additional equipment. As of June 30, 1997, there were no such
commitments.

If  inflation  in the general  economy  becomes  significant,  it may affect the
Partnership  inasmuch as the residual  (resale) values and rates on re-leases of
the  Partnership's  leased  assets may  increase as the costs of similar  assets
increase.  However,  the  Partnership's  revenues from existing leases would not
increase,  as such rates are generally fixed for the terms of the leases without
adjustment for inflation.

If interest rates increase  significantly,  the lease rates that the Partnership
can obtain on future  leases will be expected to increase as the cost of capital
is a significant  factor in the pricing of lease  financing.  Leases  already in
place, for the most part, would not be affected by changes in interest rates.


<PAGE>

Cash Flows, 1997 vs. 1996:

Six months:

During the first six months of 1997,  proceeds  from asset  sales and  operating
lease revenues were the primary sources of cash flows.

Cash flows from  operations  declined by $3,564,489  from  $3,359,858 in 1996 to
($204,631)  in 1997.  The  decrease  is a result of  decreased  operating  lease
revenues and increased balances of receivables (due to sales of certain assets).
Such revenues declined by $1,276,330 from 1996 to 1997.

Sources  of cash from  investing  activities  consisted  almost  exclusively  of
proceeds  from the sales of lease assets and from direct  financing  lease rents
accounted for as reductions of the net investment in such leases.  Proceeds from
sales of assets  increased  from  $2,152,220 in 1996 to  $14,368,852  in 1997. A
large  portion  of the  sales  proceeds  was used to pay off  non-recourse  debt
associated with the assets sold.

In 1997, there were no sources of cash from financing  activities.  Cash used to
pay non-recourse debt increased significantly.  The increase resulted from sales
of certain leases which were financed  primarily with non-recourse debt and upon
sale, the debt was repaid.

Three months:

The two major  sources of cash for the second  quarter were  proceeds form lease
asset sales and operating lease rents.

Operating  lease rents have  decreased  by  $839,890  from the prior year due to
asset sales during the preceding twelve months.

Proceeds from lease assets sales were the most  significant  source of cash from
investing  activities.  They increased from  $1,515,825 in 1996 to $9,605,818 in
1997 due to  increased  amounts of asset  sales as noted above for the six month
period.

During the  second  quarter of 1997,  there were no  financing  sources of cash.
Payments of non-recourse  debt increased for the same reasons as noted above for
the six month period.


Results of Operations

In 1997,  operations  resulted  in net  income of  $1,069,332  for the six month
period and $394,492 for the three month period.  Operations in the 1996 resulted
in net income of $897,917  for the six month  period and  $647,229 for the three
month period.

1996 vs. 1995:

Revenues  decreased from $6,680,126 in 1996 to $5,725,297 in 1997, a decrease of
$954,829.   Operating  lease  revenues  declined  by  $1,276,330  due  to  lease
terminations  and sales of the related assets.  This was partially  offset by an
increase in gains recognized on sales of assets.  Gains on sales of lease assets
increased  from $790,390 in 1996 to $1,104,635 in 1997, an increase of $314,245.
Most of the assets sold were assets  which had come off  operating  leases.  The
original cost of operating  lease assets sold increased from  $4,279,977 in 1996
to $22,978,803 in 1997.

The Partnership's  operating expenses decreased by $1,126,244  compared to 1996.
Combined,  depreciation and amortization  expenses decreased by $785,819.  These
decreases  resulted  from the lease  terminations  and asset sales noted  above.
Interest expense  decreased  compared to 1996 as a result of the debt repayments
noted above.





<PAGE>

                            PART II OTHER INFORMATION

Item 1.  LEGAL PROCEEDINGS.

         Inapplicable.

Item 2. CHANGES IN SECURITIES.

         Inapplicable.

Item 3. DEFAULTS UPON SENIOR SECURITIES.

         Inapplicable.

Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

         Inapplicable.

Item 5. OTHER INFORMATION.

         Inapplicable.

Item 6. EXHIBITS AND REPORTS ON FORM 8-K.

                  (a) Documents filed as a part of this report

                    1. Financial Statements

                       Included in Part I of this report:

                       Balance Sheets, June 30, 1997 and December 31, 1996.

                       Income  statements  for the six and three  month  periods
                       ended June 30, 1997 and 1996.

                       Statement  of  changes  in  partners'  equity for the six
                       months ended June 30, 1997.

                       Statements  of cash  flows  for the six and  three  month
                       periods ended June 30, 1997 and 1996.

                       Notes to the Financial Statements.

                    2. Financial Statement Schedules

                       All other  schedules  for which  provision is made in the
                       applicable  accounting  regulations of the Securities and
                       Exchange  Commission  are not required  under the related
                       instructions or are inapplicable, and therefore have been
                       omitted.

                  (b)  Report 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.

Date:
August 14, 1997

                      ATEL CASH DISTRIBUTION FUND IV, L.P.
                                  (Registrant)



                            By: ATEL Financial Corporation
                                General Partner of Registrant




                                     By:   /s/   A. J. BATT
                                          ---------------------------------
                                          A. J. Batt
                                          President and Chief Executive Officer
                                          of General Partner




                                     By:   /s/  DEAN L. CASH
                                          ---------------------------------
                                          Dean L. Cash
                                          Executive Vice President
                                          of General Partner




                            By:   /s/ F. RANDALL BIGONY
                                --------------------------------------------
                                F. Randall Bigony
                                Principal financial officer of registrant




                            By:   /s/ DONALD E.  CARPENTER
                                --------------------------------------------
                                Donald E.  Carpenter,
                                Principal accounting officer of
                                registrant