UNITED STATES
                SECURITIES AND EXCHANGE COMMISSION
                      Washington, D.C. 20549

                           FORM 10-QSB

  (Mark One)
     [X]  Annual Report Pursuant to Section 13 or 15(d) of The
  Securities Exchange Act of 1934

        For the Quarter Ended March 31, 2002

                               OR

     [ ]  Transition Report Pursuant to Section 13 or 15(d) of The
  Securities Exchange Act of 1934

        For the transition period from         to

                  Commission File Number   0-24633


                      RAKO CAPITAL CORPORATION
           (Name of small business issuer in its charter)


            Nevada                               91-0853320
(State or other jurisdiction of              (I.R.S. Employer
incorporation or organization)               Identification No.)


      56 W. 400 S. Ste. 220
      Salt Lake City, Utah                         84101
(Address of principal executive offices)         (Zip Code)


Issuer's telephone no.:  (801) 322-3401


     Check whether the issuer  (1) filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the past 12
months (or for such shorter period that the registrant was required
to file such reports), and  (2) has been subject to such filing
requirements for the past 90 days.   Yes [x]    No

             APPLICABLE ONLY TO CORPORATE ISSUERS

     State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date.

              Class                  Outstanding as of May 14, 2002
   Common Stock, $.001 Par Value                2,525,030



                      TABLE OF CONTENTS
                                                           Page
                                                          Number

PART  I.   FINANCIAL  INFORMATION

Item  1.  Financial  Statements

     Balance  Sheets, December 31, 2001 and
     March  31,  2002                                       3

     Statements  of  Operations,  Three  Months
     and Six Months Ended  March 31, 2002 and  2001
     and From October 9, 1968  (Date  of  Inception)
     through  March  31,  2002                              4

     Statements  of  Stockholders'  Equity,
     From  October 9, 1968  (Date  of  Inception)
     through  March  31,  2002                              5

     Statements  of  Cash  Flows,  Three  Months
     Ended  March  31,  2002  and  2001  and
     From  October 9, 1968  (Date  of  Inception)
     through  March  31,  2002                              8

     Notes  to  Financial  Statements                       9

Item 2  Management's Discussion and Analysis or
        Plan of Operation                                  10

PART  II.  OTHER  INFORMATION

Item  1.  Legal Proceedings                                13

Item  2.  Changes In Securities                            13

Item  3.  Defaults Upon Senior Securities                  13

Item  4.  Submission of Matters to a Vote of
           Securities Holders                              13

Item  5.  Other Information                                13

Item  6.  Exhibits and Reports on Form 8-K                 13

          SIGNATURES                                       13



PART  I:  Financial  Information

Item  1:  Financial  Statements



                            RAKO CAPITAL CORPORATION
                          (A Development Stage Company)

                              FINANCIAL STATEMENTS

                       March 31, 2002 and December 31, 2001



                            RAKO CAPITAL CORPORATION
                          (A Development Stage Company)
                                 Balance Sheets

<table>
                                    ASSETS
                                   --------
                                                       March 31,     December 31,
                                                         2002            2001

                                                <c>             <c>
                                                     ------------    ------------
                                                      (Unaudited)
CURRENT ASSETS

  Cash                                               $          -    $          -
                                                     ------------    ------------
    Total Current Assets                                        -               -
                                                     ------------    ------------
  TOTAL ASSETS                                       $          -    $          -
                                                     ============    ============


The accompanying notes are an integral part of these financial statements.
</table>



                            RAKO CAPITAL CORPORATION
                          (A Development Stage Company)
                            Balance Sheets (Continued)

<table>
                     LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
                    ------------------------------------------------

                                                      March 31,     December 31,
                                                        2002            2001
                                                    ------------    ------------
                                                     (Unaudited)

                                                <c>             <c>

CURRENT LIABILITIES

  Accounts payable                                   $      3,308    $      1,470
                                                     ------------    ------------
   Total Current Liabilities                                3,308           1,470
                                                     ------------    ------------
    Total Liabilities                                       3,308           1,470
                                                     ------------    ------------

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY (DEFICIT)
  Common stock at; $0.001 par value;
   authorized 70,000,000 common shares,
   2,525,030 common shares issued and outstanding           2,525           2,525
  Additional paid-in capital                              100,358         100,358
  Deficit accumulated during the development stage       (106,191)       (104,353)
                                                     ------------    ------------
Total Stockholders' Equity (Deficit)                       (3,308)         (1,470)
                                                     ------------    ------------
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
     (DEFICIT)                                       $          -    $          -
                                                     ============    ============


The accompanying notes are an integral part of these financial statements.
</table>



                        RAKO CAPITAL CORPORATION
                      (A Development Stage Company)
                         Statements of Operations
                               (Unaudited)

<table>
                                                                    From
                                                                 Inception on
                                  For the Three Months Ended       October 9,
                                            March 31,            1968 Through
                                    --------------------------     March 31,
                                       2002           2001           2002
                                    -----------    -----------    -----------

                                <c>            <c>            <c>
REVENUES                            $         -    $         -    $         -

EXPENSES                                  1,838          1,600       (106,191)
                                    -----------    -----------    -----------
NET LOSS                                 (1,838)        (1,600)      (106,191)
                                    ===========    ===========    ===========
BASIC NET LOSS PER SHARE            $     (0.00)   $     (0.00)
                                    ===========    ===========
WEIGHTED AVERAGE NUMBER
  OF SHARES OUTSTANDING               2,525,030      1,025,030
                                    ===========    ===========


The accompanying notes are an integral part of these financial statements.
</table>



                         RAKO CAPITAL CORPORATION
                       (A Development Stage Company)
                 Statements of Stockholders' Equity (Deficit)
            From Inception on October 9, 1968 through March 31, 2002

<table>
                                                                             Deficit
                                                                            Accumulated
                                                              Additional    During the
                                           Common Stock         Paid In     Development
                                        Shares      Amount      Capital        Stage
                                      ----------  ----------  ----------     ----------

                                  <c>           <c>          <c>          <c>
Balance at inception on
October 9, 1968                                -    $       -    $       -    $       -

Common stock issued for mining claims
recorded at predecessor cost of
$0.00 per share                          400,000          400         (400)           -

Common stock issued for services
at $0.15 per share                       400,000          400       59,600            -

Common stock issued for cash
at $0.45 per share                        14,734           15        6,615            -

Costs associated with stock offering           -            -         (994)           -

Common stock issued for mining claims
recorded at predecessor cost of
$0.075 per share                         333,334          333       24,667            -

Net loss for the period from inception
on October 9, 1968 through
December 31, 1995                              -            -            -      (90,636)
                                       ---------    ---------    ---------    ---------
Balance, December 31, 1995             1,148,068        1,148       89,488      (90,636)

Cancellation of common stock            (123,024)        (123)         123            -

Fractional shares adjustment                 (14)           -            -            -

Capital contributed for payment of
expenses                                       -            -        2,461            -

Net loss for the year ended
December 31, 1996                              -            -            -       (2,461)
                                       ---------    ---------    ---------    ---------
Balance, December 31, 1996             1,025,030    $   1,025    $  92,072    $ (93,097)
                                       ---------    ---------    ---------    ---------


The accompanying notes are an integral part of these financial statements.
</table>



                          RAKO CAPITAL CORPORATION
                        (A Development Stage Company)
            Statements of Stockholders' Equity (Deficit)(Continued)
           From Inception on October 9, 1968 through March 31, 2002
<table>
                                                                               Deficit
                                                                             Accumulated
                                                               Additional    During the
                                            Common Stock         Paid In     Development
                                         Shares      Amount      Capital        Stage
                                       ---------    ---------   ---------      ---------

                                   <c>          <c>         <c>            <c>
Balance, December 31, 1996             1,025,030    $   1,025   $  92,072      $ (93,097)

Net loss for the year ended
  December 31, 1997                            -            -            -            -
                                       ---------    ---------    ---------    ---------
Balance, December 31, 1997             1,025,030        1,025       92,072      (93,097)

Capital contributed for payment of
expenses                                       -            -        1,574            -

Net loss for the year ended
December 31, 1998                              -            -            -       (1,574)
                                       ---------    ---------    ---------    ---------
Balance, December 31, 1998             1,025,030        1,025       93,646      (94,671)

Capital contributed for payment of
expenses                                       -            -        1,820            -

Net loss for the year ended
December 31, 1999                              -            -            -       (1,908)
                                       ---------    ---------    ---------    ---------
Balance, December 31, 1999             1,025,030        1,025       95,466      (96,579)

Capital contributed for payment of
expenses                                       -            -        2,721            -

Net loss for the year ended
December 31, 2000                              -            -            -       (2,971)
                                       ---------    ---------    ---------    ---------
Balance, December 31, 2000             1,025,030    $   1,025    $  98,187     $(99,550)
                                       ---------    ---------    ---------    ---------

The accompanying notes are an integral part of these financial statements.
</table>



                          RAKO CAPITAL CORPORATION
                        (A Development Stage Company)
            Statements of Stockholders' Equity (Deficit)(Continued)
           From Inception on October 9, 1968 through March 31, 2002
                                 (Unaudited)

<table>
                                                                              Deficit
                                                                            Accumulated
                                                                Additional   During the
                                           Common Stock           Paid In    Development
                                        Shares       Amount       Capital       Stage
                                       ---------    ---------    ---------    ---------

                                   <c>          <c>          <c>           <c>
Balance, December 31, 2000             1,025,030    $   1,025    $  98,187     $(99,550)

Common stock issued to related party
for conversion of debt at $0.0018
per share on May 31, 2001              1,500,000        1,500        1,225            -

Capital contributed for expenses
paid by shareholder                            -            -          946            -

Net loss for the year ended
December 31, 2001                              -            -            -       (4,803)
                                       ---------    ---------    ---------    ---------
Balance, December 31, 2001             2,525,030        2,525      100,358     (104,353)

Net loss for the three
months ended March
31, 2002 (Unaudited)                           -            -            -       (1,838)
                                       ---------    ---------    ---------    ---------
Balance March 31,
2002 (Unaudited)                       2,525,030    $   2,525    $ 100,358    $(106,191)
                                       =========    =========    =========    =========


The accompanying notes are an integral part of these financial statements.
</table>


                             RAKO CAPITAL CORPORATION
                           (A Development Stage Company)
                             Statements of Cash Flows
                                    (Unaudited)


<table>
                                                                              From
                                                                          Inception On
                                               For the Three Months Ended   October 9,
                                                         March 31,         1968 Through
                                                -------------------------    March 31,
                                                    2002           2001         2002
                                                -----------    -----------   ----------

                                            <c>            <c>           <c>
CASH FLOWS FROM OPERATING ACTIVITIES

CASH FLOWS FROM OPERATING ACTIVITIES

  Net loss                                      $    (1,838)   $    (1,600)  $ (106,191)
  Adjustments to reconcile net loss to net
  cash(used) by operating activities:
  Disposal of assets for services                         -              -       60,000
  Stock issued for services                               -              -            -
  Changes in assets and liabilities:
  Increase(decrease)in accounts payable               1,838            367       28,308
                                                -----------    -----------   ----------
  Net Cash (Used) by Operating Activities                 -         (1,233)     (17,883)
                                                -----------    -----------   ----------
CASH FLOWS FROM INVESTING ACTIVITIES                      -              -            -
                                                -----------    -----------   ----------
CASH FLOWS FROM FINANCING ACTIVITIES

  Issuance of common stock
   for cash                                               -              -        5,636
  Increase in accounts
   payable-related party                                  -              -        2,725
  Expenses paid on Company's
   behalf                                                 -          1,233        9,522
                                                -----------    -----------   ----------
    Net Cash Provided by
     Financing Activities                                 -          1,233       17,883
                                                -----------    -----------   ----------

NET INCREASE (DECREASE)
IN CASH                                                   -              -            -
                                                -----------    -----------   ----------
CASH AT BEGINNING
OF PERIOD                                                 -              -            -
                                                -----------    -----------   ----------
CASH AT END OF PERIOD                           $         -    $         -   $        -
                                                ===========    ===========   ==========


The accompanying notes are an integral part of these financial statements.
</table>



                             RAKO CAPITAL CORPORATION
                           (A Development Stage Company)
                        Statements of Cash Flows (Continued)
                                    (Unaudited)

<table>
                                                                               From
                                                                           Inception On
                                               For the Three Months Ended    October 9,
                                                         March 31,          1968 Through
                                                -------------------------     March 31,
                                                    2002           2001          2002
                                                -----------    -----------    -----------

                                            <c>            <c>            <c>
SUPPLEMENTAL DISCLOSURES OF CASH
  FLOW INFORMATION:

CASH PAID FOR:

  Interest                                      $       -      $       -      $       -
  Income taxes                                  $       -      $       -      $       -

NON-CASH FINANCING ACTIVITIES

Common stock issued for services                $       -      $       -      $  60,000
Common stock issued for mining                  $       -      $       -      $  25,000
Common stock issued for conversion
of debt-related party                           $       -      $       -      $   2,725


The accompanying notes are an integral part of these financial statements.
</table>


                          RAKO CAPITAL CORPORATION
                        (A Development Stage Company)
                      Notes to the Financial Statements
                     March 31, 2002 and December 31, 2001


NOTE 1 -  CONDENSED FINANCIAL STATEMENTS

         The accompanying financial statements have been prepared by the
         Company without audit.  In the opinion of management, all
         adjustments (which include only normal recurring adjustments)
         necessary to present fairly the financial position, results of
         operations and cash flows at March 31, 2002 and 2001 and for all
         periods presented have been made.

         Certain information and footnote disclosures normally included in
         financial statements prepared in accordance with accounting
         principles generally accepted in the United States of America have
         been condensed or omitted.  It is suggested that these condensed
         financial statements be read in conjunction with the financial
         statements and notes thereto included in the Company's December 31,
         2001 audited financial statements.  The results of operations for
         periods ended March 31, 2002 and 2001 are not necessarily indicative
         of the operating results for the full years.

NOTE 2 -  GOING CONCERN

         The Company's financial statements are prepared using generally
         accepted accounting principles applicable to a going concern which
         contemplates the realization of assets and liquidation of liabilities
         in the normal course of business.  The Company has not yet
         established an ongoing source of revenues sufficient to cover its
         operating costs and allow it to continue as a going concern.  The
         ability of the Company to continue as a going concern is dependent on
         the Company obtaining adequate capital to fund operating losses until
         it becomes profitable.  If the Company is unable to obtain adequate
         capital, it could be forced to cease operations

         In order to continue as a going concern, the Company will need, among
         other things, additional capital resources.  Management's plans to
         obtain such resources for the Company include (1) obtaining capital
         from management and significant shareholders sufficient to meet its
         minimal operating expenses, and (2) seeking out and completing an
         agreement with an existing operating company.  However, management
         cannot provide any assurances that the Company will be successful
         in accomplishing any of its plans.

         The ability of the Company to continue as a going concern is
         dependent upon its ability to successfully accomplish the plans
         described in the preceding paragraph and eventually secure other
         sources of financing and attain profitable operations.  The
         accompanying financial statements do not include any adjustments
         that might be necessary if the Company is unable to continue as a
         going concern.


Item 2   Management's Discussion and Analysis or Plan of Operation

    The following information should be read in conjunction with the financial
statements and notes thereto appearing elsewhere in this Form 10-QSB.

    The Company is considered a development stage company and presently has no
assets or capital and no significant operations or income.  The costs and
expenses associated with the preparation and filing of its registration
statement in 1998 and subsequent quarterly and annual reports have been paid
for by a shareholder of the Company.  It is anticipated that the Company will
require only nominal capital to maintain the corporate viability of the
Company and necessary funds will most likely be provided by the Company's
officers and directors in the immediate future.  However, unless the Company
is able to facilitate an acquisition of or merger with an operating business
or is able to obtain significant outside financing, there is substantial doubt
about its ability to continue as a going concern.

    In the opinion of management, inflation has not and will not have a
material effect on the operations of the Company until such time as the
Company successfully completes an acquisition or merger.  At that time,
management will evaluate the possible effects of inflation on the Company
related to it business and operations following a successful acquisition or
merger.

Plan of Operation

    During the next 12 months, the Company will actively seek out and
investigate possible business opportunities with the intent to acquire or
merge with one or more business ventures.  Because the Company lacks funds,
it may be necessary for the officers and directors to either advance funds
to the Company or to accrue expenses until such time as a successful business
consolidation can be made.  Management intends to hold expenses to a minimum
and to obtain services on a contingency basis when possible.  Further, the
Company's directors will defer any compensation until such time as an
acquisition or merger can be accomplished and will strive to have the business
opportunity provide their remuneration.  However, if the Company engages
outside advisors or consultants in its search for business opportunities, it
may be necessary for the Company to attempt to raise additional funds.  As of
the date hereof, the Company has not made any arrangements or definitive
agreements to use outside advisors or consultants or to raise any capital.
In the event the Company does need to raise capital, most likely the only
method available to the Company would be the private sale of its securities.
Because of the nature of the Company as a development stage company, it is
unlikely that it could make a public sale of securities or be able to borrow
any significant sum from either a commercial or private lender.  There can be
no assurance that the Company will be able to obtain additional funding when
and if needed, or that such funding, if available, can be obtained on terms
acceptable to the Company.

    The Company does not intend to use any employees, with the possible
exception of part-time clerical assistance on an as-needed basis.  Outside
advisors or consultants will be used only if they can be obtained for minimal
cost or on a deferred payment basis.  Management is confident that it will be
able to operate in this manner and to continue its search for business
opportunities during the next twelve months.

Net Operating Loss

    The Company has accumulated approximately $15,600 of net operating loss
carryforwards as of March 31, 2002, which may be offset against taxable income
and income taxes in future years.  The use of these losses to reduce future
income taxes will depend on the generation of sufficient taxable income prior
to the expiration of the net operating loss carryforwards.  The carry-forwards
expire in the year 2021.  In the event of certain changes in control of the
Company, there will be an annual limitation on the amount of net operating
loss carryforwards which can be used.  No tax benefit has been reported in the
financial statements for the year ended December 31, 2001 and three months
ended March 31, 2002 because there is a 50% or greater chance that the
carryforward will not be used.  Accordingly, the potential tax benefit of the
loss carryforward is offset by a valuation allowance of the same amount.

Risk Factors and Cautionary Statements

    Forward-looking statements in this report are made pursuant to the
"safe harbor" provisions of the Private Securities Litigation Reform Act of
1995.  The Company wishes to advise readers that actual results may differ
substantially from such forward-looking statements.  Forward-looking
statements involve risks and uncertainties that could cause actual results to
differ materially from those expressed in or implied by the statements,
including, but not limited to, the following:  the ability of the Company to
search for appropriate business opportunities and subsequently acquire or
merge with such entity, to meet its cash and working capital needs, the
ability of the Company to maintain its existence as a viable entity, and other
risks detailed in the Company's periodic report filings with the Securities
and Exchange Commission.

Recent Accounting Pronouncements

    In June 1998, the Financial Accounting Standards Board, or FASB, issued
Statement of Financial Accounting Standards (SFAS) 133, Accounting for
Derivative Instruments and Hedging Activities.  The new standard establishes
accounting and reporting standards for derivative instruments, including
certain derivative instruments embedded in other contracts, and for hedging
activities.  It requires companies to record derivatives on the balance sheet
as assets or liabilities, measured at fair value. Accounting for changes in
the values of those derivatives depends on the intended use of the derivatives
and whether they qualify for hedge accounting.  SFAS 133, as amended by SFAS
137 and SFAS 138, was adopted as of April 1, 2001.  Management believes the
adoption of this statement will have no material impact on the Company's
financial statements.

    In June 2001, the FASB issued SFAS 141, Business Combinations, and SFAS
142, Goodwill and Other Intangible Assets. SFAS 141 requires that the purchase
method of accounting be used for all business combinations initiated after
June 30, 2001 as well as all purchase method business combinations completed
after June 30, 2001.  SFAS 141 also specifies criteria intangible assets
acquired in a purchase method business combination must meet to be recognized
and reported apart from goodwill, noting that any purchase price allocatable
to an assembled workforce may not be accounted for separately.  SFAS 142
requires that goodwill and intangible assets with indefinite useful lives no
longer be amortized, but instead tested for impairment at least annually in
accordance with the provisions of SFAS 142. SFAS 142 also requires that
intangible assets with estimatable useful lives be amortized over their
respective estimated useful lives to their estimated residual values, and
reviewed for impairment in accordance with SFAS No. 121, Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of.
The Company adopted SFAS 141 upon issuance and SFAS 142 effective April 1,
2001. The adoption of SFAS 141 and 142 did not affect the financial statements.

    On August 16, 2001, the FASB issued SFAS No. 143, Accounting for Asset
Retirement Obligations, which is effective for fiscal years beginning after
June 15, 2002. It requires that obligations associated with the retirement of
a tangible long-lived asset be recorded as a liability when those obligations
are incurred, with the amount of the liability initially measured at fair
value.  Upon initially recognizing an accrued retirement obligation, an entity
must capitalize the cost by recognizing an increase in the carrying amount of
the related long-lived asset. Over time, the liability is accreted to its
present value each period, and the capitalized cost is depreciated over the
useful life of the related asset. Upon settlement of the liability, an entity
either settles the obligation for its recorded amount or incurs a gain or
loss upon settlement. Although management has not completed the process of
determining the effect of this new accounting pronouncement, it currently
expects that the effect of SFAS No. 143 the Company's financial statements,
when it becomes effective, will not be significant.

    In October 2001, the FASB issued SFAS 144, Accounting for the Impairment
or Disposal of Long-Lived Assets, which addresses financial accounting and
reporting for the impairment or disposal of long-lived assets. Although SFAS
144 supersedes SFAS 121, it retains many of the fundamental provisions of
SFAS 121.  SFAS 144 also supersedes the accounting and reporting provisions of
Accounting Principles Board Opinion No. 30, Reporting-the Results of
Operations-Reporting the Effects of Disposal of a Segment of a Business, and
Extraordinary, Unusual and Infrequently Occurring Events and Transactions, for
the disposal of a segment of a business. However, it retains the requirement
in APB 30 to report separately discontinued operations and extends that
reporting to a component of an entity that either has been disposed of, by
sale, abandonment, or in a distribution to owners, or is classified as held
for sale.  SFAS 144 is effective for fiscal years beginning after December 15,
2001 and interim periods within those fiscal years.  Management believes the
adoption of SFAS 144 will not have a significant effect on the Company's
financial statements.


PART II

Item 1.  Legal Proceedings

    There are presently no material pending legal proceedings to which the
Company or any of its subsidiaries is a party or to which any of its property
is subject and, to the best of its knowledge, no such actions against the
Company are contemplated or threatened.

Item 2.  Changes In Securities

    The Company has made an application to have its Common Stock traded in the
over-the-counter market and quotations published on the OTC Bulletin Board.
Its application has been finalized and a trading symbol has been assigned to
the Company.  It's trading symbol is RKOC.

Item 3.  Defaults Upon Senior Securities

    This Item is not applicable to the Company.

Item 4.  Submission of Matters to a Vote of Security Holders

    There were no matters submitted to a vote of the security holders during
the three months ended March 31, 2002.

Item 5.  Other Information

    This Item is not applicable to the Company.

Item 6.  Exhibits and Reports on Form 8-K

    No report on Form 8-K was filed by the Company during the
three month period ended March 31, 2002.



                            SIGNATURES

    In accordance with the requirements of the Securities Exchange
Act of 1934, the Registrant caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.


                                   Rako Capital Corporation



Dated:  May 14, 2002           BY: /S/ Geoffrey Williams
                                   --------------------------
                                   Geoffrey Williams
                                   President, Chief Executive
                                   Officer and Director

Dated:  May 14, 2002           BY: /S/ Bobbi Heywood
                                   --------------------------
                                   Bobbi Heywood
                                   Secretary and Director