Note 1: Organization and Significant Accounting Policies: Inventories (Policies)

12 Months Ended

Aug. 31, 2012

Policies

Inventories

Inventories – Parts and supplies inventories are stated at the lower of cost or market.  Cost is determined using the average cost method.  Work-in-process and finished goods are stated at the lower of the accumulated manufacturing costs or market.  We maintain a reserve for obsolete inventories to reduce excess and obsolete inventories to their estimated net realizable value.  The reserve was $100,000 as of August 31, 2012 and 2011.