Quarterly report pursuant to Section 13 or 15(d)

Income Taxes (Tables)

v2.4.0.6
Income Taxes (Tables)
3 Months Ended
Feb. 28, 2013
Income Tax Disclosure [Abstract]  
Summary of temporary differences
At February 28, 2013 and November 30, 2012, respectively, the Company had temporary differences arising from the following:
 
 
February 28, 2013
 
 
 
 
 
 
Classified As
Type
 
Amount
 
Deferred Tax
 
Short-Term
Asset
 
Long-Term
(Liability)
Depreciation
 
$
(523,404
)
 
$
(193,136
)
 
$

 
$
(193,136
)
Unrealized (gain) on investments
 
(134,162
)
 
(49,511
)
 
(49,511
)
 

Reserve for bad debts
 
23,966

 
8,844

 
8,844

 

Reserve for returns
 
1,663,018

 
613,715

 
613,715

 

Reserve for obsolete inventory
 
598,526

 
220,878

 
220,878

 

Vacation accrual
 
304,513

 
112,376

 
112,376

 

Charitable contributions
 
741,356

 
273,588

 
126,852

 
146,736

Section 263A costs
 
291,440

 
107,552

 
107,552

 

Loss carry forward
 
1,853,514

 
684,015

 
684,015

 

Net deferred tax asset (liability)
 
 
 
$
1,778,321

 
$
1,824,721

 
$
(46,400
)
 
 
 
 
 
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 expense is made up of the following components:
 
 
Three Months Ended
 
 
February 28, 2013
 
February 29, 2012
Current tax - Federal
 
$

 
$
11,488

Current tax - State & Local
 
552

 
3,469

Deferred tax
 
(658,282
)
 
51,955

Total tax
 
$
(657,730
)
 
$
66,912

 
 
 
 
 
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
February 28, 2013
 
$
231,168

 
$
396,145

 
$
627,313

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
February 28, 2013
 
$

 
$

 
$

November 30, 2012
 
$

 
$
9,440

 
$
9,440

Provision for income taxes computed at the statutory rate
A reconciliation of the (benefit) provision for income taxes computed at the statutory rate to the effective rate for the three months ended February 28, 2013 and February 29, 2012 is as follows:
 
 
 
Three Months Ended
 
Three Months Ended
 
 
February 28, 2013
 
February 29, 2012
 
 
Amount
 
Percent of Pretax Income
 
Amount
 
Percent of Pretax Income
(Benefit) provision for income taxes at federal statutory rate
 
$
(568,861
)
 
34.00
%
 
$
52,512

 
34.00
%
Increases in taxes resulting from:
 
 
 
 
 
 
 
 
State income taxes, net of federal income tax benefit
 
(48,520
)
 
2.90
%
 
9,483

 
6.14
%
Non-deductible expenses and other adjustments
 
(40,349
)
 
2.41
%
 
4,917

 
3.18
%
(Benefit) provision for income taxes at effective rate
 
$
(657,730
)
 
39.31
%
 
$
66,912

 
43.32
%