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

                              FORM 10-QSB

   [X]    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                  THE SECURITIES EXCHANGE ACT OF 1934

                 For the Quarter Ended September 30, 2001

                                   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
    ---------------------------------------------------------------
   (Exact name of small business issuer as specified 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

   Registrant's telephone no., including area code:  (801) 322-3401

     Check whether the issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
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 september 30, 2001.
   Common Stock, $.001 par value              2,525,030






                              C O N T E N T S
PART I

Balance Sheets                                                          3

Statements of Operations                                                4

Statements of Stockholders' Equity (Deficit)                            5

Statements of Stockholders' Equity (Deficit) Continued                  6

Statements of Cash Flows                                                7

Statements of Cash Flows (Continued)                                    8

Notes to the Financial Statements                                       9

PART II

Item 1  Legal Proceedings                                              10

Item 2  Changes in Securities                                          10

Item 3  Defaults in Senior Securities                                  10

Item 4  Submission of Matters to a Vote of Security Holders            10

Item 5  Other Information                                              10

Item 6  Exhibits and Reports on Form 8-K                               10






                        RAKO CAPITAL CORPORATION
                      (A Development Stage Company)

                          FINANCIAL STATEMENTS

                   September 30, 2001 and December 31, 2000




                        RAKO CAPITAL CORPORATION
                      (A Development Stage Company)
                             Balance Sheets

<table>
                                 ASSETS

                                                  September 30, December 31,
                                                          2001         2000
                                                  --------------------------
                                                   (Unaudited)

                                               <c>           <c>
CURRENT ASSETS

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

                LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES

Accounts payable                                   $    1,845    $      338
                                                    ------------  -----------
Total Current Liabilities                              1,845           338
                                                    ------------  -----------
STOCKHOLDERS' EQUITY (DEFICIT)

 Common stock at $0.001 par value; authorized
   70,000,000 common shares and 20,000,000
   preferred shares; 2,525,030 and 1,025,030 common
   shares issued and outstanding, respectively            2,525        1,025
 Additional paid-in capital                              99,412       98,187
 Deficit accumulated during the development stage      (103,782)     (99,550)
                                                    ------------  -----------

   Total Stockholders' Equity (Deficit)                  (1,845)        (338)
                                                    ------------  -----------
   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	                 For the	          October 9,
                            Three Months Ended	     Nine Months Ended	   1968 Through
                               September 30,	         September 30,	     September 30,
                            ------------------     -----------------
                              2001       2000       2001	       2000	         2001
                         -----------------------------------------------------------

                      <c>         <c>         <c>        <c>        <c>
REVENUE                   $        -  $        -  $       -  $       -  $         -

EXPENSES                       1,507         500      4,232      3,844      103,782
                          ----------  ----------  ----------  ----------  ----------
NET LOSS                  $   (1,507) $     (500) $  (4,232) $  (3,844) $ (103,782)
                          ==========  ==========  ==========  ==========  ==========
BASIC LOSS PER SHARE      $    (0.00) $    (0.00	) $   (0.00) $   (0.00)
                          ==========  ==========  ==========  ==========
WEIGHTED AVERAGE
 NUMBER OF SHARES          2,525,030   1,025,030  1,691,697   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 September 30, 2001
<table>
                                                                         Deficit
                                                                        Accumulated
                                                            Additional   During the
                                        Common Stock         Paid-In    Development
                                     Shares      Amount      Capital       Stage
                                   ----------  ----------  ----------   -----------

                              <c>      <c>         <c>          <c>
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)

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)
                                ----------  ----------  ----------   -----------


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 September 30, 2001

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

                                <c>        <c>          <c>         <c>
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)

Common stock issued in lieu of debt 	1,500,000       1,500        1,225           -

Net loss for the nine months ended
 September 30, 2001 (unaudited)            -           -            -         (4,232)
                                    ----------  ----------   ----------   -----------
Balance, September 30, 2001
(unaudited)                          2,525,030 $    2,525   $   99,412   $  (103,782)
                                    ==========  ==========   ==========   ===========


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	              October 9,
                            	                Nine Months Ended	        1968 Through
                                               September 30,         September 30,
                                            -----------------
                                             2001        2000             2001
                                         ------------------------------------------


CASH FLOWS FROM OPERATING ACTIVITIES

                                   <c>          <c>              <c>
 Net loss                              $  (4,232)   $  (3,344)       $ (103,782)
 Adjustments to reconcile net loss to
  net cash (used) by operating activities:
 Stock issued for services                    -            -             60,000
 Increase in current liabilities           4,232        1,726            29,570
                                          ----------   ----------      ----------
   Net Cash (Used) by Operating Activities    -        (1,618)          (14,212)
                                          ----------   ----------      ----------
CASH FLOWS FROM INVESTING ACTIVITIES          -             -                -
                                          ----------   ----------      ----------
CASH FLOWS FROM FINANCING ACTIVITIES

 Issuance of common stock for cash            -             -             5,636
 Expenses paid on Company's behalf            -          1,618            8,576

   Net Cash Provided by Financing Activities  -          1,618           14,212
                                          ----------   ----------      ----------
INCREASE (DECREASE) IN CASH AND CASH
 EQUIVALENTS                                  -             -                -

CASH AND CASH EQUIVALENTS AT
 BEGINNING OF PERIOD                          -             -                -

CASH AND CASH EQUIVALENTS AT END
 OF PERIOD                             $      -     $       -        $       -
                                          ==========   ===========     ==========
Cash Paid For:

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

SUPPLEMENTAL SCHEDULE OF NON-CASH
 FINANCING ACTIVITIES

 Stock issued for services             $      -     $       -        $   60,000
 Stock issued for mining claims        $      -     $       -        $   25,000
 Stock issued in lieu of debt          $   2,725    $       -        $    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
                    September 30, 2001 and December 31, 2000


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
     September 30, 2001 and 2000 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, 2000 audited financial statements.
     The results of operations for periods ended September 30, 2001 and 2000
     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 a 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 a merger 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.

NOTE 3 - MATERIAL EVENT

     On July 19, 2001, the Company changed its domicile from Idaho to Nevada.
     The articles of merger were filed on July 19, 2001 between Rako Capital
     Corporation an Idaho corporation and Rako Capital Corporation, a Nevada
     Corporation.  The Surviving entity, Rako Capital Corporation (a Nevada
     Corporation) acquired all outstanding owner's interests of Rako Capital
     Corporation (an Idaho Corporation).


Item 2.

Management's Discussion and Analysis of Financial Condition and Results of
Operations

     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 with no assets or
capital and with no significant operations or income since approximately 1986.
In July 1998, the Company filed with the Securities and Exchange Commission a
registration statement on Form 10-SB.  All costs and expenses associated with
the registration statement 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.

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 $8,914 of net operating loss
carryforwards as of September 30, 2001, 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 2020.  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, 2000 or
the nine month period ended September 30, 2001 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.

Inflation

    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.

Risk Factors and Cautionary Statements

    This report contains certain  forward-looking statements.  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 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.



                             PART II

Item 1.  Legal Proceedings

    There are presently no other 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

    This Item is not applicable to the Company.


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

    This Item is not applicable to the Company.

Item 5.  Other Information

    This Item is not applicable to the Company.

Item 6.  Exhibits and Reports on Form 8-K

    (a)  Reports on Form 8-K

             No report on Form 8-K was filed by the Company during the
    three month period ended September 30, 2001.






                           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 CORPORATION

Date:  November 14, 2001                 By:  /S/ Geoffery Williams
                                            GEOFFERY WILLIAMS
                                            President
                                            and Director



Date:   November 14, 2001                 By:  /S/ Bobbi Heywood
                                            BOBBI HEYWOOD
                                            Secretary/Treasurer,  and
                                            Director



The accompanying notes are an integral part of these financial statements.