Quarterly report pursuant to Section 13 or 15(d)

Income Taxes (Tables)

v2.4.0.8
Income Taxes (Tables)
9 Months Ended
Aug. 31, 2013
Income Tax Disclosure [Abstract]  
Summary of temporary differences
At August 31, 2013 and November 30, 2012, respectively, the Company had temporary differences arising from the following:
 
 
August 31, 2013
 
 
 
 
 
 
Classified As
Type
 
Amount
 
Deferred Tax
 
Short-Term
Asset
 
Long-Term
(Liability)
Depreciation
 
$
(975,902
)
 
$
(360,144
)
 
$

 
$
(360,144
)
Unrealized (gain) on investments
 
(189,356
)
 
(69,879
)
 
(69,879
)
 

Reserve for bad debts
 
31,165

 
11,501

 
11,501

 

Reserve for returns
 
1,608,120

 
593,455

 
593,455

 

Reserve for obsolete inventory
 
711,583

 
262,600

 
262,600

 

Vacation accrual
 
308,630

 
113,895

 
113,895

 

Charitable contributions
 
913,478

 
337,107

 
9,964

 
327,143

Section 263A costs
 
275,871

 
101,807

 
101,807

 

Loss carry forward
 
3,102,201

 
1,144,826

 
1,144,826

 

Net deferred tax asset (liability)
 
 
 
$
2,135,168

 
$
2,168,169

 
$
(33,001
)
 
 
 
 
 
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 inventory
 
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
)
Schedule of income tax expense
Income tax (benefit) expense is made up of the following components:
 
Three Months Ended
Nine Months Ended
 
August 31, 2013
 
August 31, 2012
August 31, 2013
 
August 31, 2012
Current tax - Federal
$

 
$
106,764

$

 
$
298,382

Current tax - State & Local
70,490

 
63,463

93,599

 
124,001

Deferred tax (benefit) expense
(458,839
)
 
107,142

(1,181,620
)
 
121,549

Total tax (benefit) expense
$
(388,349
)
 
$
277,369

$
(1,088,021
)
 
$
543,932

Schedule of prepaid and refundable income taxes
Prepaid and refundable income taxes are made up of the following components:
Prepaid and refundable income taxes
 
Federal
 
State &
Local
 
Total
August 31, 2013
 
$
337,532

 
$
343,357

 
$
680,889

November 30, 2012
 
$
377,292

 
$
367,885

 
$
745,177

Schedule of income tax payable
Income tax payable is made up of the following components:
Income Taxes Payable
 
Federal
 
State &
Local
 
Total
August 31, 2013
 
$

 
$

 
$

November 30, 2012
 
$

 
$
9,440

 
$
9,440

Provision for income taxes computed at the statutory rate
A reconciliation of the (benefit from) provision for income taxes computed at the statutory rate to the effective rate for the nine months ended August 31, 2013 and August 31, 2012 is as follows:

 
 
Nine Months Ended
 
Nine Months Ended
 
 
August 31, 2013
 
August 31, 2012
 
 
Amount
 
Percent of Pretax Income
 
Amount
 
Percent of Pretax Income
(Benefit from) provision for income taxes at federal statutory rate
 
$
(1,038,068
)
 
34.00
 %
 
$
463,186

 
34.00
 %
Changes in (benefit) provision for income taxes resulting from:
 
 
 
 
 
 
 
 
State income taxes, net of federal income tax benefit
 
(88,541
)
 
2.90
 %
 
87,188

 
6.40
 %
Non-deductible expenses and other adjustments
 
38,588

 
(1.26
)%
 
(6,442
)
 
(0.47
)%
(Benefit from) provision for income taxes at effective rate
 
$
(1,088,021
)
 
35.64
 %
 
$
543,932

 
39.93
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
A reconciliation of the (benefit from) provision for income taxes computed at the statutory rate to the effective rate for the three months ended August 31, 2013 and August 31, 2012 is as follows:
 
 
 
Three Months Ended
 
Three Months Ended
 
 
August 31, 2013
 
August 31, 2012
 
 
Amount
 
Percent of Pretax Income
 
Amount
 
Percent of Pretax Income
(Benefit from) provision for income taxes at federal statutory rate
 
$
(401,622
)
 
34.00
 %
 
$
240,079

 
34.00
 %
Changes in (benefit) provision for income taxes resulting from:
 
 
 
 
 
 
 
 
State income taxes, net of federal income tax benefit
 
(34,256
)
 
2.90
 %
 
45,191

 
6.40
 %
Non-deductible expenses and other adjustments
 
47,529

 
(4.02
)%
 
(7,901
)
 
(1.12
)%
(Benefit from) provision for income taxes at effective rate
 
$
(388,349
)
 
32.88
 %
 
$
277,369

 
39.28
 %