UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                                
                      Washington, DC 20549
                                
                           FORM 10-QSB

(Mark One)

[X   ]    QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
     SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended November 30, 1995

[    ]    TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
     EXCHANGE ACT
For the transition period from ____________ to _______________

                    Commission file number 0-12551

                         CREATIVE COMPUTER APPLICATIONS, INC.
    (Exact name of small business issuer as specified in its charter)

          California                         95-3353465
(State or other jurisdiction of        (I.R.S. Employer
incorporation or organization)        Identification No.)

        26115-A Mureau Road, Calabasas, California 91302
            (Address of principal executive offices)

                         (818) 880-6700
                   Issuer's telephone number:


     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

     State  the  number  of shares outstanding  of  each  of  the
issuer's  classes of common equity, as of the latest  practicable
date:  2,737,605 common shares as of December 29, 1995

     Transitional Small Business Disclosure Format (check one):
                         Yes            No   X

                                FORM 10-QSB



                                 I N D E X



PART I - Financial Information:                                     PAGE

Condensed Balance Sheets, as at November 30, 
        1995 and August 31, 1995                                     3

Condensed Statements of Income for the three 
        months ended November 30, 1995 and 
        November 30, 1994                                            4

Condensed Statements of Cash Flows for the 
        three months ended November 30,1995 
        and November 30, 1994                                        5

Notes to Condensed Financial Statements                              6

Management's Discussion and Analysis or Plan of Operation            6


PART II - Other Information:

Items 1 through 6                                                    8

Signatures                                                           8
                      PART 1 - FINANCIAL INFORMATION

                         CONDENSED BALANCE SHEETS
                   ____________________________________

                                                November  30,    August 31,
                                                    1995           1995  *
                                                 (Unaudited)

                     ASSETS

CURRENT ASSETS:
  Cash                                            $  300,398     $ 377,813
  Receivables                                      1,803,748     1,560,087
  Inventories                                        586,760       646,456
  Prepaid expenses and other assets                  110,508        81,132

     TOTAL CURRENT ASSETS                          2,801,414     2,665,488

PROPERTY AND EQUIPMENT, net                          243,540       250,005
INVENTORY OF COMPONENT PARTS                          77,156        87,655
CAPITALIZED SOFTWARE COSTS, net of accumulated
  amortization of $313,003 and $271,142              529,407       503,768
INTANGIBLES, net                                     353,928       366,721
OTHER ASSETS                                          24,612        24,990

     TOTAL ASSETS                                 $4,030,057     $3,898,627

      LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
  Notes payable to bank                           $  213,083     $ 146,084
  Accounts payable                                   416,916       493,273
  Accrued liabilities:
     Vacation Pay                                    156,032       150,652
     Other                                           305,584       294,790
  Deferred service contract income, current 
    portion                                          445,438       493,259
  Capital lease obligations, current portion          15,370        23,643

          TOTAL CURRENT LIABILITIES                1,552,423     1,601,701

CAPITAL LEASE OBLIGATIONS, net of current 
    portion                                           24,470        30,096
OTHER LIABILITIES                                     57,887        65,435

     TOTAL LIABILITIES                             1,634,780     1,697,232

SHAREHOLDERS' EQUITY:
  Preferred shares, no par value; 500,000 
     shares authorized; no shares outstanding              -             -
  Common shares, no par value; 100,000,000 
     shares authorized; 2,737,605 and 
     2,735,715 shares outstanding                  5,678,120     5,676,230
  Accumulated deficit                             (3,282,843)    (3,474,83
5)
          TOTAL SHAREHOLDERS' EQUITY               2,395,277     2,201,395


                                                  $4,030,057     $3,898,627
                                     
                    See Notes to Financial Statements.


* As presented in the audited financial statements
                      CONDENSED STATEMENTS OF INCOME


 Three Months Ended November 30,                                      
                                                      1995           1994
                                               
                                                         (unaudited)

NET SALES                                         $1,715,534     $1,772,260

COST OF SALES                                        893,320        989,032

  Gross profit                                       822,214        783,228

OPERATING EXPENSES:
  Selling, general and administrative                468,989        439,618

  Research and development                           137,524        129,157

                                                     606,513        568,775

  Operating income                                   215,701        214,453

INTEREST AND OTHER INCOME                                456            708

INTEREST EXPENSE                                      (7,565)       (12,025)

  Income before taxes on income                       208,592        203,136

TAXES ON INCOME                                       (16,600)       (16,000)

NET INCOME                                            191,992        187,136

EARNINGS PER COMMON SHARE (Note 2):                $      .06     $      .07


WEIGHTED AVERAGE NUMBER OF COMMON
  SHARES AND COMMON STOCK
  EQUIVALENTS OUTSTANDING                           3,023,905      2,641,100

                    See Notes to Financial Statements.
                    CONDENSED STATEMENTS OF CASH FLOWS

                        Increase (Decrease) in Cash
                                     

                                                     Three Months Ended
                                                         November 30,
                                                     1995           1994

                                                          (unaudited)

OPERATING ACTIVITIES:
  Net  income                                        191,992    $  187,136
  Adjustments to reconcile net income
     to net cash provided by operating activities:
          Depreciation and amortization               92,788        75,055
          Provision for possible losses               10,056         5,322
  Changes in operating assets and
     liabilities:
          Receivables                              (253,717)     (483,643)
          Inventories                                 59,696      (40,622)
          Prepaid expenses and other assets         (29,376)         2,184
          Accounts payable                          (76,357)     (111,685)
          Accrued liabilities                       (39,196)       198,294

     Net cash used in operating
          activities                                (44,114)     (167,959)

INVESTING ACTIVITIES
  Additions to property and equipment               (20,792)       (2,110)
  Capitalized software costs                        (67,500)      (45,000)
     Net cash used in investing
          activities                                (88,292)      (47,110)

FINANCING ACTIVITIES:
  Additions to (payments on) notes payable, net       67,000      (33,000)
  Decrease in capital lease obligations,
     net of payments                                (13,899)       (6,612)
     Exercise of Stock Option                          1,890             -
     Net cash used in financing activities            54,991      (39,612)

NET DECREASE IN CASH                                (77,415)     (254,681)

Cash, beginning of period                            377,813       431,532

Cash, end of period                               $  300,398     $ 176,851

                    See notes to financial statements.
                  NOTES TO CONDENSED FINANCIAL STATEMENTS

Note 1.   In   the   opinion  of  management,  the  accompanying  unaudited
          condensed  financial  statements reflect all  adjustments  (which
          include  only  normal  recurring accruals) necessary  to  present
          fairly  the Company's financial position as of November 30,  1995
          and  August 31, 1995, the results of its operations for the three
          months  ended November 30, 1995 and 1994, and cash flows for  the
          three months ended November 30, 1995 and November 30, 1994.

Note 2.   Earnings per common share are computed by dividing the net income
          for  each period by the weighted average number of common  shares
          plus  the  weighted average of dilutive common share  equivalents
          outstanding  during the period using the treasury  stock  method.
          Common  share equivalents consist of stock options and  warrants.
          Common stock equivalents are considered dilutive for earnings per
          share  if  the  average stock price exceeds  the  exercise  price
          during  the  period.  The common stock equivalents  are  weighted
          from  the beginning of the earliest quarter in which they  become
          dilutive.



Item 2.   Management's Discussion and Analysis of Results of Operations and
Financial Condition


                           Results of Operations

           Sales  for  the first quarter of fiscal 1996 ended November  30,
1995  decreased  by  $56,726 or 3% compared to the same quarter  of  fiscal
1995.   When  analyzed  by product category, sales of Clinical  Information
Systems  (CIS) decreased $31,562 or 3%, sales of data acquisition  products
decreased  $39,988 or 19% and service and other revenues increased  $14,824
or  3%.   The decrease in sales is primarily attributable to a decrease  in
the  sale  of  peripheral products, and a fewer number of data  acquisition
products  shipped during the quarter.  The Company's new CIS products  have
continued to receive interest from the healthcare market which resulted  in
new  orders  for such products during the quarter and a marked increase  in
new quotations for potential sales.

           Cost of sales for the first quarter of 1996 decreased by $95,712
or  10%  as compared to the same quarter of 1994.  The decrease in cost  of
sales was primarily attributable to a decrease in material costs of $91,323
or 23% and, a decrease in other costs of $12,822 or 4%.  The decreases were
partially  offset  by  an increase in labor costs of  $8,433  or  3%.   The
decrease  in material costs is attributable to a greater volume of software
only revenues that improve gross margins.  Cost of sales as a percentage of
sales decreased to 52% in the current fiscal quarter as compared to 56%  in
the same quarter of fiscal 1995.

          Selling and administration expenses increased $29,371 or about 7%
for the current quarter compared to the same quarter of 1995.  The increase
was  primarily attributable to planned expenditures in sales and  marketing
associated  with  the Company's CIS products.  Management  anticipates  the
increased  level of sales and marketing expenditures to continue in  future
quarters as the Company expands its sales and marketing activities.

          Research and Development expense increased $8,367 or about 6% for
the  current quarter as compared to the same quarter of 1995.  The increase
was primarily attributable to increases in personnel salaries.  The Company
continues  to expend considerable resources on new product development  and
product  enhancements  which should continue  at  current  levels  for  the
foreseeable future.

           As a result of the aggregate factors discussed above the Company
earned  net  income  of  $191,992 or $.06 per share for  the  first  fiscal
quarter ended November 30, 1995 compared to $187,136 or $.07 per share  for
the same quarter a year ago.

                      Capital Resources and Liquidity

           As  of November 30, 1995, the Company's working capital amounted
to  $1,248,991 compared to $1,063,787 at August 31, 1995.  The ratio of the
Company's current assets to current liabilities was approximately 1.8 to  1
at November 30, 1995 compared to 1.7 to 1 at August 31, 1995.

           The  Company's  bank  line of credit as  of  November  30,  1995
amounted to approximately $413,000, of that amount $213,000 was outstanding
as  of  that  date.  The Company was in compliance with all  covenants  and
financial ratios required by its bank as of November 30, 1995. In  December
1995  the Company reached an agreement with its bank to renew its revolving
line  of  credit  in  the amount of $400,000 until February  1,  1997,  and
established a new term loan in the amount of $300,000.  Proceeds  from  the
new  term  loan will be used to purchase and implement a new  company  wide
computer  system  to  automate the service, production  and  administrative
activities of the Company.


           The Company believes that its cash flow from operations together
with  its  bank credit facilities should be sufficient to fund its  working
capital requirements for its 1996 fiscal year.


                Seasonality, Inflation and Industry Trends

          The Company sales are generally lower in the summer and higher in
the  fall and winter.  Inflation has had no material effect on the  Company
business  since  the  Company has been able to adjust  the  prices  of  its
products  and  services.   Management  believes that  most  phases  of  the
healthcare  segment of the computer systems industry will  continue  to  be
competitive  and that the changes making place in healthcare  will  have  a
long  term  positive  impact  on  its business.   In  addition,  management
believes  that  the industry will experience more significant technological
advances  which will improve the quality of service and reduce costs.   The
Company  is  poised to meet these challenges by continuing  to  employ  new
technologies   when  they  become  available,  diversifying   its   product
offerings, and by constantly enhancing its software applications.




                        PART II - OTHER INFORMATION


Items 1 through 5.  NOT APPLICABLE

Item 6.   Exhibits and Reports on Forms 8-K

(a)  Exhibit 11 - Statement re: computation of per share earnings.
                    
(b)                 There  were  no  reports filed on Form 8-K  during  the
                    quarter ended November 30, 1995.


                                SIGNATURES

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


          CREATIVE COMPUTER APPLICATIONS, INC.
          (Company)



Date  January 11, 1996
                                                  Steven. M. Besbeck,
President
                                                  Chief Executive Officer,
Chief
                                                  Financial Officer
                                                                 Exhibit 11

                   CREATIVE COMPUTER APPLICATIONS, INC.
                                     
                 COMPUTATION OF EARNINGS PER COMMON SHARE
                                     

                                                         Three Months ended
                                                            November 30,
                                                           1995      1994


ENDING MARKET PRICE PER SHARE                         $    1.75    $     3.38

AVERAGE MARKET PRICE PER SHARE                        $    1.79    $     1.65


  Net Income                                          $ 191,992    $  187,136

PRIMARY EARNINGS PER SHARE:
  Shares:
        Weighted    average    number   
        of   common   shares    outstanding           2,735,715     2,334,704
     Incremental shares assuming all dilutive 
        options and warrants exercised and 
        proceeds used to purchase shares in 
        the market at the average stock price 
        during the period                               288,190       306,396

                                                      3,023,905     2,641,100

  Primary earnings per share;
                                                     $      .06    $      .07
FULLY DILUTED EARNINGS PER SHARE:
  Shares:
        Weighted average number of common   
        shares outstanding                            2,735,715     2,334,704
        Incremental shares assuming 
          all dilutive options and warrants
          exercised and proceeds used to 
          purchase shares in the market at 
          the average stock price during the 
          period or the stock price at the 
          end of the period, whichever is higher        677,000       583,344

                                                      3,412,715     2,918,048

     Fully diluted earnings per share:               $      .06    $      .06