FORM 10-QSB/A
                    Amendment No. 1 to Form 10-QSB

                    SECURITIES AND EXCHANGE COMMISSION
                          Washington, D.C.  20549

                Quarterly Report Under Section 13 or 15(d)
                  of the Securities Exchange Act of 1934

For Quarter Ended:       June 30, 1997
Commission File Number:  0-4728


                  ARROW-MAGNOLIA INTERNATIONAL, INC.
                                                                 
     (Exact name of small business issuer as specified in its
charter)

                               Texas
                                                                 
      (State or other jurisdiction of incorporation or
organization)



                             75-0408335
                                                                 
                   (I.R.S. Employer Identification No.)


                2646 Rodney Lane, Dallas, Texas 75229
                                                                 

                 (Address of principal executive offices)


                           (214) 247-7111
                                                                 
             (Issuer's telephone number, including area code)


Check whether the issuer (1) has 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.

                X                        
               Yes                   No

         Number of common shares outstanding as of June 30, 1997:

              Common Stock, $0.10 par value, 2,373,120 shares
<PAGE> 

The registrant's Condensed Consolidated Statements of Cash Flows
contained in its Form 10-QSB for the quarter ended June 30, 1997
are amended in their entirety to read as follows:

<PAGE>
<PAGE>
          ARROW-MAGNOLIA INTERNATIONAL, INC. AND SUBSIDIARY
           Condensed Consolidated Statements of Cash Flows

Six months ended June 30, 1997 and 1996

                                            1997        1996
                                       (unaudited)  (unaudited)
<TABLE>
<S>                                          <C>        <C>
Cash flows from operating activities:
 Net earnings                            $  668,554    512,612
 Adjustments to reconcile net earnings 
 to net cash used in operating activities:
   Depreciation and amortization             37,274     35,274
   Deferred income taxes                    (22,234)   (25,238)
   Provision for doubtful accounts           65,395    118,679
   (Increase) decrease in operating assets:
     Receivables                         (1,057,178)  (637,134)
     Inventories                           (104,554)   (67,546)
     Other assets                           (95,394)    18,548
   (Decrease) increase in operating 
   liabilities:
     Accounts payable                       294,790    109,858
     Accrued liabilities                    (42,178)   (60,560)
     Income taxes payable                   (73,625)   (65,356)
        Net cash used in operating 
        activities                         (329,150)   (60,863)

Cash flows from investing activities:
 Purchase of short-term investments              -     374,602
 Acquisition of property and equipment      (99,182)   (34,603)
      Net cash used in investing 
      activities                            (99,182)   339,999

Cash flows from financing activities:
 Repayments of note payable                 (50,000)   (90,000)
 Proceeds from common stock issuance             -      31,250
 Repayments of long-term debt               (58,240)   (68,828)
     Net cash used in financing 
     activities                            (108,240)  (127,578)
          
Net decrease in cash                       (536,572)   151,558
Cash at beginning of period               1,755,000    761,419
Cash at end of period                    $1,218,428    912,977
</TABLE>
See accompanying notes to condensed consolidated financial
statements.
<PAGE>
<PAGE>

 

                                 SIGNATURE

In accordance with the requirements of the Exchange Act, the
registrant caused this Form 10-QSB/A amending its Form 10-QSB to
be signed on its behalf by the undersigned, thereunto duly
authorized.


                              ARROW-MAGNOLIA INTERNATIONAL, INC.




Date: August 20, 1997         By: /s/ Morris Shwiff              

                              Morris Shwiff, President
                              and Principal Executive Officer