Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Nov. 30, 2012

The tax effect of temporary differences as reflected in the components of deferred tax assets and liabilities were the following at November 30, 2012 and 2011, respectively:


	November 30, 2012
							Classified As
Type	Amount			Deferred Tax			Short-Term Asset			Long-Term (Liability)
Depreciation	$	(1,028,273	)	$	(379,470	)	$	—		$	(379,470	)
Unrealized gain on investments		(55,863	)		(20,616	)		(20,616	)		—
Reserve for bad debts		26,340			9,721			9,721			—
Reserve for returns		1,772,405			654,083			654,083			—
Reserve for obsolete inventories		671,609			247,849			247,849			—
Vacation accrual		323,470			119,372			119,372			—
Charitable Contributions		722,555			266,649			126,852			139,797
Section 263A costs		285,129			105,223			105,223			—

Net deferred tax asset (liability)				$	1,002,811		$	1,242,484		$	(239,673	)


	November 30, 2011
							Classified As
Type	Amount			Deferred Tax			Short-Term Asset			Long-Term (Liability)
Depreciation	$	(451,334	)	$	(182,339	)	$	—		$	(182,339	)
Unrealized loss on investments		192,064			77,594			77,594			—
Reserve for bad debts		53,191			21,489			21,489			—
Reserve for returns		2,014,303			813,778			813,778			—
Reserve for obsolete inventories		892,226			360,459			360,459			—
Vacation accrual		348,558			140,817			140,817			—
Charitable Contributions		564,583			228,093			228,093			—
Section 263A costs		239,404			96,719			96,719			—

Net deferred tax asset (liability)				$	1,556,610		$	1,738,949		$	(182,339	)

Schedule of Income Tax Expense

Income tax expense (benefit) is made up of the following components:


	November 30, 2012
	Federal		State & Local		Total
Current tax expense	$	2,033	$	20,907	$	22,940
Deferred tax expense		310,713		144,877		455,590

	$	312,746	$	165,784	$	478,530


	November 30, 2011
	Federal		State & Local		Total
Current tax expense	$	147,471	$	180,948	$	328,419
Deferred tax expense		59,776		73,346		133,122

	$	207,247	$	254,294	$	461,541



	November 30, 2010
	Federal			State & Local			Total
Current tax (benefit) expense	$	(390	)	$	85,916		$	85,526
Deferred tax (benefit)		(605,740	)		(172,871	)		(778,611	)

	$	(606,130	)	$	(86,955	)	$	(693,085	)

Schedule of Prepaid and Refundable Income Taxes

Prepaid and refundable income taxes are made up of the following components:


	Federal		State & Local		Total
November 30, 2012	$	377,292	$	367,885	$	745,177

November 30, 2011	$	368,507	$	350,321	$	718,828

Schedule of Income Tax Payable

Income tax payable is made up of the following components:


	Federal		State & Local		Total
November 30, 2012	$	—	$	9,440	$	9,440

November 30, 2011	$	—	$	47,232	$	47,232

Schedule of Reconciliation for Income Tax Expense Computed at Statutory Rate

A reconciliation of income tax expense computed at the statutory rate to income tax expense at the effective rate for each of the three years ended November 30, 2012, 2011 and 2010 is as follows:


	2012					2011					2010
	Percent					Percent					Percent
														Of Pretax
	Amount		Amount			Amount		Amount			Amount			Income
Income tax expense at federal statutory rate	$	320,954		34.00	%	$	324,101		34.00	%	$	(801,667	)		34.00	%
Increases (decreases) in taxes resulting from:
State income taxes, net of federal income tax benefit		117,290		12.43	%		104,465		10.96			(128,045	)		5.43
Non-deductible expenses and other adjustments		40,286		4.26	%		32,975		3.46			236,627			(10.04	)

Income tax expense (benefit)at effective rate	$	478,530		50.69	%	$	461,541		48.42	%	$	(693,085	)		29.39	%

- Definition

Tabular disclosure of deferred tax liabilities not recognized because of the exceptions to comprehensive recognition of deferred taxes, including a description of the temporary differences, events that would cause the temporary differences to become taxable, the cumulative amounts of the temporary differences and the amounts not recognized as deferred tax liabilities or a statement that the determination of the deferred tax liabilities is not practicable.

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