RESTATEMENT AND RECLASSIFICATIONS

12 Months Ended

Oct. 31, 2011

RESTATEMENT AND RECLASSIFICATIONS [Text Block]

2. RESTATEMENT AND RECLASSIFICATIONS

The Company has restated its previously issued Consolidated Financial Statements to correct the recording of the gain on sale of property and other errors. The Company has also reclassified its recording of past preferred stock dividends as an adjustment to accumulated deficit.

The following tables summarize the corrections on each of the affected financial statement line items for each period presented:

		As Previously			Restatement
		Reported			Adjustment			As Restated
Consolidated Balance Sheet
ACCOUNTS RECEIVABLE	$	82,585		$	37,715		$	120,300
PROPERTY ON OPERATING LEASES		1,383,008			285,000			1,688,008
PROPERTY USED IN STKY. OPER.		570,267			502,000			1,072,267
ART INVENTORY		80,500			(70,500	)		10,000
ACCOUNTS PAYABLE & ACCR. EXP.		351,765			(191,395	)		160,370
ACCRUED PROFESSIONAL FEES		24,000			(24,000	)		0
LINE OF CREDIT - ORDER BUYING		0			106,395			106,395
INCOME TAXES PAYABLE		10,000			(10,000	)		0
PREFERRED STOCK DIV. PAYABLE		169,550			(169,550	)		0
ADDITIONAL PAID-IN CAPITAL		28,322,341			(2,795,620	)		25,526,721
ACCUMULATED DEFICIT		(15,895,049	)		3,838,385			(12,056,664	)
Consd. Stmt. Of Operations
GENERAL & ADMIN. EXPENSE		968,989			(25,000	)		943,989
INTEREST & OTHER INCOME		(375	)		(12,715	)		(13,090	)
IMPAIRMENT AND LOSS FROM
ART SALE		8,120			70,500			78,620