Income Taxes (Tables)

12 Months Ended

Aug. 31, 2018

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:

	Years Ended August 31,
	2018			2017
Current:
Federal	$	2,249,000		$	2,142,000
State		660,000			119,000
Foreign		(35,000	)		(32,000	)
		2,874,000			2,229,000
Deferred:
Federal		401,000			(88,000	)
State		(82,000	)		32,000
Foreign		(22,000	)		118,000
		297,000			62,000
Total	$	3,171,000		$	2,291,000

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

Income taxes for the years ended August 31, 2018 and 2017 differ from the amounts computed by applying the federal blended and statutory corporate rates of 25.4% for 2018 and 34% for 2017 to the pre-tax income from continuing operations. The differences are reconciled as follows:

	Years Ended August 31,
	2018			2017
Current:
Expected income tax benefit at statutory rate	$	2,601,000		$	2,112,000
Increase (decrease) in taxes due to:
State tax, net of federal benefit		546,000			297,000
Permanent differences		28,000			25,000
Change in deferred tax asset valuation allowance		1,000			(4,000	)
Other, net		(5,000	)		(139,000	)
Income tax expense	$	3,171,000		$	2,291,000

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

The components of deferred taxes at August 31, 2018 and 2017 are summarized below:

	August 31,
	2018			2017
Deferred tax assets (liabilities):
Net operating loss	$	508,000		$	508,000
Allowance for doubtful accounts		(5,000	)		3,000
Accrued expenses		209,000			395,000
Accrued workers’ compensation		7,000			18,000
Inventory reserves		708,000			936,000
Unrealized losses on investment		(7,000	)		(223,000	)
Excess of tax over book depreciation		(235,000	)		(113,000	)
Other		26,500			43,000
Total deferred tax assets		1,211,500			1,567,000
Valuation allowance		(509,000	)		(508,000	)
Total deferred tax assets	$	702,500		$	1,059,000