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 quarterly period ended March 31, 1996
                                    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 0-16371

                            NAMSCO CORPORATION
          (Exact name of registrant as specified in its charter)

               Utah                             87-0430312
  (State or other jurisdiction of             (I.R.S. Employer  
incorporation or organization)              Identification No.)

         E. 122 Montgomery                 
         SPOKANE, WA.                           99207   
(Address of principal executive offices)     (Zip code)

                            (509)  327-7784
                     (Registrant's telephone number,
                         including area code)

Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 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     

As of October 1, 1996,  4,319,902 shares of common stock were
outstanding.

The total number of pages in this form 10-Q is  10  pages.
<PAGE>
                     NAMSCO CORPORATION AND SUBSIDIARY
                               Form 10-QSB
                                   INDEX
                                                      Page Number

Part I.   Financial Information

          Item I.  Financial Statements

                    Consolidated Balance Sheets 
                    March 31, 1996 and December 31, 1995     3-4

                    Consolidated Statements of Income
                    for the three month periods ended 
                    March 31, 1996 and 1995                   5

                    Consolidated Statements of Stockholders'      
                    Equity
                    December 31, 1995 and March 31, 1996      6

                    Consolidated Statement of Cash Flows for the  
                    three month periods ended March 31, 1996      
                    and 1995                                  7

                    Notes to Financial Statements            8-10

          Item II.  Management's Discussion and Analysis
                    of Financial Condition and Results of
                    Operations                               10

Part II.  Other Information and Signatures                   10   
                        
         
<PAGE>
                     NAMSCO CORPORATION AND SUBSIDIARY
                        CONSOLIDATED BALANCE SHEETS


                                       March 31,     December 31,
ASSETS                                     1996             1995  
Current assets:
   Cash                             $    59,882        $  75,279  
 Accounts receivable                    461,205          441,529  
 Current portion of net investment
     in sales-type leases             2,429,632        3,287,954  
 Current portion of notes
     receivable-Tribute contracts       192,187          280,337  
 Inventories                          1,524,026        1,459,593  
 Prepaid expense and other            (140,429)          100,882  
                                     __________        _________  
           
Total                                 4,526,503       5,645,574

Property and Equipment (net)
   Rental equipment                     778,797          964,454  
 Operating equipment and
     leasehold improvements           2,636,293        2,691,544  
                                        

Total                                 3,415,090        3,655,998

Other assets
   Non-current portion of net investment
     in sales-type leases            16,822,599       15,968,714
   Non-current portion notes receivable-
     Tribute contracts                  105,546           83,857  
Non-current portion of
     term contracts                     139,688          184,867  
 Notes and advance due from related
     parties                            424,375          424,375  
                                        

Total                                17,492,208       16,661,813

Total Assets                        $25,433,801      $25,963,385










Notes to the financial statements for the year ended December 31,
1996 should be read in conjunction with these interim financial
statements and are not repeated here.

<PAGE>
                    NAMSCO CORPORATION AND SUBSIDIARY
                        CONSOLIDATED BALANCE SHEETS
                                (Continued)

                                        March 31,      December 31,
LIABILITIES AND STOCKHOLDERS' EQUITY         1996             1995 

Current liabilities:
   Accounts payable:
     Trade                          $   1,158,835     $  1,200,272 
   Reorganization costs                   133,758                 
   Accrued expenses:
     Payroll & related taxes              304,847          457,251 
    Sales commissions                       7,969           34,278 
    Interest                              257,098          174,388 
  Current maturities of 
     long-term debt                    16,631,828       10,014,279 
  Advance rental collections               19,798                 
                                          

    Total                              18,514,133       11,880,468

Liabilities due after one year:
  Maintenance on Tribute contracts         66,000
   Long-term debt                       5,003,727       11,758,099 
 Advance collections on
    rental accounts                        84,951            1,856 
 Deferred income taxes                  1,294,545        1,439,345

    Total                               6,383,223       13,265,300

Commitments and contingencies         

Stockholders' Equity
    Common stock,$.007 par value;
     Authorized, 15,000,000 shares; issued 
       and outstanding, 4,319,902          30,240           30,240 
   Additional paid-in capital             201,269          201,269 
   Retained earnings                      304,936          586,108

    Total                                 536,445          817,617

Total Liabilities & Equity            $25,433,801      $25,963,385









Notes to the financial statements for the year ended December 31,
1995 should be read in conjunction with these interim financial
statements and are not repeated here.


<PAGE>
                     NAMSCO CORPORATION AND SUBSIDIARY
                     CONSOLIDATED STATEMENTS OF INCOME
                                     
                                  Three months ended March 31, 
Revenues:                                1996             1995
   New music installations          $ 719,373      $ 1,376,669  
Renewal contracts                     546,972          120,802
   Tribute contracts                  372,661          180,197  
Direct sales and other                188,534          188,067
   Finance                            537,747          531,084  
Service                               135,091          131,461
   Rental                             112,880          132,031  
Other income                           18,392                0

      Total                         2,631,650        2,660,311

Costs and Expenses: 
  Cost of sales                       508,447          586,501  
Selling, general and 
    administrative                  1,001,981        1,114,654  
Maintenance                           274,950          233,496

      Total                         1,785,378        1,934,651

Income from operations                846,272           725,660

Other expense:
  Interest                            657,648          522,013  
Cancellation of sales-type leases 
    Systems replaced with 
      CD equipment                    440,566          285,822    
Removed systems                       174,030          178,833

      Total                         1,272,244          986,668

Loss before income taxes            (425,972)        (261,008)

Provision for income taxes          (144,800)         (88,700)

Net loss                          $ (281,172)      $ (172,308)

Weighted average common
  shares outstanding                4,319,902        4,319,902

Loss per share of common stock        $ (.07)          $ (.04)







 
Notes to the financial statements for the year ended December 31,
1995 should be read in conjunction with these interim financial
statements and are not repeated here.



<PAGE>
                     NAMSCO CORPORATION AND SUBSIDIARY
              CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY     
                   December 31, 1995 and March 31, 1996

                  Common Stock             Additional
                                           Paid-in   Retained     
                      Shares    Amount     Capital   Earnings     
                                    
BALANCE, 
December 31, 1995   
                  4,319,902    $30,240    $201,267   $586,108

Net loss for the three months
  ended March 31, 1996
                         -         -         -      (281,172)

BALANCE, March 31, 1996
                  4,319,902    $30,240    $201,267   $304,936


























                                                                  
Notes to the financial statements for the year ended December 31,
1995 should be read in conjunction with these interim financial
statements and are not repeated here.
<PAGE>
                    NAMSCO CORPORATION AND SUBSIDIARY
                   CONSOLIDATED STATEMENTS OF CASH FLOWS
  

                                      Three Months Ended March 31,
                                             1996             1995 
Net cash flow from operating
     activities                          $179,465          $84,759

Cash flows from investing activities:
  Additions-rental equipment            (161,657)        (141,978) 
Additions-music and
    video libraries                         -             (36,111) 
Additions-operating equipment           (11,051)          (23,522)

      Total                             (172,708)        (201,611)

Cash flows from financing activities:
  Proceeds from sale of contracts      2,589,834           593,194 
  Principal payments on funds received
    from sale of contracts             (441,876)         (145,072) 
 Proceeds from borrowing                     -              19,065 
  Payments of long term debt         (2,080,530)         (323,962) 
 Payments on contracts and
    prefiling obligations               (89,582)             -    
         
      Total                             (22,154)          143,225 
 
Increase (Decrease) in cash             (15,397)           26,373 
         

Cash at beginning of period              75,279          130,182  
   

Cash at end of period                  $ 59,882         $156,555  
        












Notes to the financial statements for the year ended December 31,
1995 should be read in conjunction with these interim financial
statements and are not repeated here.
<PAGE>
                     NAMSCO CORPORATION AND SUBSIDIARY
                       Note to Financial Statements

Note 1- Compliance with terms of Secured Credit Agreement.

The Company is in default under the terms of the credit agreement
with "secured lender", hereafter refered to as lender.  As a
result, the entire debt to the lender has been classified as a
current liability.  The default is related to non-compliance with
the provisions for maintaining positive cash flow, timely payment
of taxes and a limitation on capital expenditures.  The lender has
not waived the non-compliance.  The Company has made all regularly
scheduled payments to the lender.

Item II

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

Liquidity and Capital Resources

The Company's primary source of cash flow is from the collection of
monthly service fees on the 3,800 (approx) music playback systems,
1,700 (approx) music library agreements and 700 (approx) tribute
programs currently in place in funeral homes.  Customers have the
option of paying cash, financing or leasing new music
installations.  Lease and sale agreements are sold (discounted) to
a finance company to provide the funds to cover the costs
associated with installing new music playback systems and tribute
programs that are not paid in full at the time of the installation. 
The discounted amount realized from the sale of the agreement is
approximately the same as the cash sale price for the equipment.

The Company has been in contact with additional financing sources
to assure that it will have the financing to continue new
installations of its music systems and tribute programs. 
Indications are that other sources are available. 

During the first quarter of 1996, the Company initiated a plan to
pay down the secured lender.  Contracts classified under the "net
investment in sales type leases" were discounted to net present
value and the proceeds were paid direct to the lender in the amount
of $1,964,946 for a significant reduction in the amount due the
secured lender.

Results of Operations

Total revenues for the quarter ended March 31, 1995 are $28,661
less than total revenues for the same period of the prior year, a
decrease of 1%.  The decrease is the result of decreases in the
number of new agreements for the period.  The amount of finance
income recognized from the net investment in sales-type leases also
increased reflecting the gross increase in the number of new
systems installed in the previous quarter.  A total of 83 new
installations were completed in the first quarter of 1996 compared
with 134 installations in 1995.  A total of 180 renewal agreements
were completed in the first quarter of 1996 compared to the renewal
of 33 expiring lease agreements in 1995.  The expiring agreements
that are not renewed under term agreements represent customers that
continue to be billed as monthly rentals. 

<PAGE>
The decrease in cost of sales as a percent of new music and tribute
installations reflects the change instituted in 1994 to make a less
expensive cabinet style available to existing users of tape
playback systems that wished to convert to CD playback systems. 
The majority of the new CD music installations in the later part of
1994 and during the first quarter of 1995 were the new "conversion"
style cabinet that is less expensive to manufacture and less costly
to ship.  Cost of sales for the first quarter of 1996 is 28% 
compared to 34% for the same period of 1995 with less new
installations but an increase in renewal upgrades to CD units.

Selling, general and administrative costs decreased to 38% of gross
sales for the quarter ended March 31, 1996 compared to 41% for the
same period of the prior year.  The decrease in costs reflects
management's effort to control expenditures.  In the first quarter
of 1996, an increased effort was made to upgrade existing tape
installations by the addition of CD units and thereby retain the
customer base.


Maintenance costs increased 18% in the first quarter ended March
31, 1996 compared to the same period of the prior year.  The
increase is primarily attributable to the number of installations
of CD units in 1995.

Interest expense increased in the first quarter of 1996 by $135,635
over the same period of the prior year reflecting the increase in
debt from the sale of contracts to a finance company.  Also, the
effective interest rate on funds from the finance company is higher
than the interest rate for debt that is being currently reduced.

The book value of replaced systems is charged to other expense in
the period the replacement installation is made.  The book value
for equipment under lease includes the recorded residual value and
the present value of future payments that are cancelled at the time
of the replacement.  The value of rental equipment removed is the
undepreciated book value of the rental equipment.  

The book value of removed systems charged to operations is made up
of the same costs as replaced systems.  During the quarter ended
March 31, 1996, the number of removed systems increased to 73 tape
playback systems from 74 systems for the same period of the prior
year, reflecting a decrease of 1%.

The effect of the above changes resulted in an increase in the net
loss during the quarter ended March 31, 1996 compared to the net
loss for the same period of the prior year. The majority of the the
increase in the loss is in the increased interest expense and the
write off of the residual amount of replaced tape systems.

Balance Sheet

The net investment in sales-type leases decreased $4,437 in the
first quarter of 1996.  This reflects the addition of new lease
agreements at rates approximately equal to the expiring or replaced
lease agreements.  More emphasis has been placed on writing lease
agreements with fewer orders for the outright purchase of the CD
playback equipment.  This has resulted in approximately the same
number of leases of equipment for new CD playback installations.  

The receivables from tribute contracts declined $66,461 in the
first quarter of 1995.  The decline reflects the expiration of
tribute contracts in excess of new contracts added.
Inventories increased $64,433 during the quarter ended March 31,
1996.  This reflects the anticipated increase in installations
resulting from the new sales orders and CD upgrades written in the
first quarter of 1996.  

Total term debt increased $31,767 during the quarter ended March
31, 1996.  This reflects the addition of $2,147,959 to notes
payable for leases plus the  of long term debt to the secured
lender by $2,080,530., along with a $59,521 reduction in contracts
payable.  The difference is made up of minor increases and
decreases in long term liabilities.

Part II.  Other Information

Item 3.  Defaults upon Senior Securities
          
The last "standstill period" instituted by the secured lender as
provided under the Plan of reorganization whereby no payments can
be made to the holders of Senior Convertible Debentures ended on
November 6, 1995 and some interest payments have been made through
March 31, 1996.  The Plan of Reorganization provides for an "Event
of Default" and as of this date, unpaid interest on subordinated
debt and unpaid payments under plan to unsecured creditors and
taxing agencies also constitute an "Event of Default".

                           Opinion of Management

The balance sheet as of March 31, 1996 and the related statements
of income, changes in stockholders' equity and cash flows for the
three month periods ended March 31, 1996 and 1995 are unaudited. 
In the opinion of Management, all adjustments necessary for a fair
presentation of such financial statements have been included.  Such
adjustments consisted only of normal recurring items.  Interim
results are not necessarily indicative of results for a full year. 
It is suggested that these financial statements be read in
conjunction with the financial statements and notes thereto
included in the Company's latest 10-KSB filing with the SEC.  A
copy of the form 10-KSB can be obtained by contacting the corporate
office and requesting a copy.

                                SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.



Date  May 11, 1995                       /s/ Merrill P. Womach    
           

                                     Merrill P. Womach
                                     President and Chief          
                                     Executive Officer            
                                     Acting Secretary and Treasurer 
                                     (Principal Executive Officer)