Income Taxes (Tables)

12 Months Ended

Aug. 31, 2017

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The following summarizes the Company’s provision for income taxes on income from operations:

	Year Ended August 31,
	2017		2016
Current:
Federal	$	2,142,000	$	2,226,000
State		119,000		362,000
Foreign		(32,000)		28,000
		2,229,000		2,616,000
Deferred:
Federal		(88,000)		(273,000)
State		32,000		90,000
Foreign		118,000		—
		62,000		(183,000)
Total	$	2,291,000	$	2,433,000

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

Income taxes for the years ended August 31, 2017 and 2016 differ from the amounts computed by applying the federal statutory corporate rates of 34% to the pre-tax income from operations. The differences are reconciled as follows:

	Year Ended August 31,
	2017		2016
Current:
Expected income tax benefit at statutory rate	$	2,112,000	$	2,234,000
Increase (decrease) in taxes due to:
State tax, net of federal benefit		297,000		303,000
Permanent differences		25,000		29,000
Change in deferred tax asset valuation allowance		(4,000)		(121,000)
Other, net		(139,000)		(12,000)
Income tax expense	$	2,291,000	$	2,433,000

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The components of deferred taxes at August 31, 2017 and 2016 are summarized below:

	August 31,
	2017		2016
Deferred tax assets:
Net operating loss	$	508,000	$	518,000
Allowance for doubtful accounts		3,000		8,000
Accrued expenses		395,000		381,000
Accrued workers’ compensation		18,000		25,000
Inventory reserve		936,000		852,000
Unrealized losses on investment		(223,000)		(167,000)
Excess of tax over book depreciation		(113,000)		(147,000)
Other		43,000		198,000
Total deferred tax assets		1,567,000		1,668,000
Valuation allowance		(508,000)		(518,000)
Total deferred tax assets	$	1,059,000	$	1,150,000