Annual report pursuant to Section 13 and 15(d)

Income Taxes

v3.5.0.2
Income Taxes
12 Months Ended
Jun. 30, 2016
Income Tax Disclosure [Abstract]  
Income Taxes

8.   Income Taxes The following are the components of income taxes:

 

Fiscal years ended June 30,   2016   2015
         
Current                
Federal   $ 895,423     $ 878,700  
State     153,278       150,416  
      1,048,701       1,029,116  
                 
Deferred                
Federal     3,790       (15,527 )
State     649       (2,658 )
      4,439       (18,185 )
    $ 1,053,140     $ 1,010,931  

 

 

The reconciliation of income tax expense computed at the federal statutory tax rate of 34% to the provision for income taxes is as follows:

 

Fiscal years ended June 30,   2016   2015
         
Tax at the statutory rate   $ 949,681     $ 912,134  
State income taxes,
    net of federal benefit
    101,392       97,384  
Other     2,067       1,413  
    $ 1,053,140     $ 1,010,931  
                 
Effective tax rate     37.7%       37.7%  

 

  Deferred income taxes reflect the net tax effect of temporary differences between the bases of assets and liabilities for financial reporting purposes and the bases used for income tax purposes.  Significant components of the Company’s current and noncurrent deferred tax assets and liabilities are as follows:

 

Fiscal years ended June 30,   2016   2015
         
Current deferred tax assets:                
Allowance for doubtful accounts   $ 60,209     $ 50,425  
Inventory capitalization     30,364       36,361  
Inventory reserves     18,310       22,475  
      108,883       109,261  
                 
Noncurrent deferred tax assets:                
Equipment and improvements     10,024       13,725  
License, trademarks and other
    intangible assets
    2,582       2,942  
      12,606       16,667  
Total deferred income tax assets   $ 121,489     $ 125,928  

 

As of June 30, 2016, the Company was subject to potential federal and state tax examinations for the tax years including and subsequent to 2012.