Quarterly report pursuant to Section 13 or 15(d)

STATEMENTS OF CASH FLOWS (UNAUDITED)

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STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)
 3 Months Ended
May 31, 2012
May 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $ 90,339 $ 197,959
Adjustments to reconcile net income to net cash from operating activities:    
Depreciation and amortization 40,537 22,319
Deferred capital gain - building lease (5,620) (5,620)
Changes in operating assets and liabilities:    
Decrease in accounts receivable 147,737 101,711
Increase in inventory (149,988) (161,954)
Decrease in prepaid expense 56,730 28,329
Decrease in deferred tax asset    45,641
Increase (decrease) in accounts payable 27,122 (26,483)
Increase (decrease) in accrued payroll and related taxes (16,152) 24,126
Increase (decrease) in accrued expense (34,383) 28,098
Increase in security deposits (2,812)   
Increase (decrease) in accrued tax liability (50,704) 92,493
NET CASH PROVIDED BY OPERATING ACTIVITIES 102,806 346,619
CASH FLOWS FROM INVESTING ACTIVITIES    
Payments for property and equipment (121,896) (31,460)
Purchase of certificates of deposit (128)  
NET CASH USED IN INVESTING ACTIVITIES (122,024) (31,460)
CASH FLOWS FROM FINANCING ACTIVITIES    
Payments to note payable to related parties (10,123) (9,534)
Payments on notes payable (504) (469)
NET CASH USED IN FINANCING ACTIVITIES (10,627) (10,003)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (29,845) 305,156
CASH AND CASH EQUIVILENTS, BEGINNING OF PERIOD 1,757,223 1,322,250
CASH AND CASH EQUIVILENTS, END OF PERIOD 1,727,378 1,627,406
Cash paid during the period for:    
Interest 7,207 8,076
Taxes $ 98,000 $ 3,125