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Income Taxes
 12 Months Ended
Jun. 30, 2014
Income Tax Disclosure [Abstract]  
Income Taxes
6.   Income Taxes The following are the components of income taxes:

    

Years ended June 30,  2014  2013
       
Current          
Federal  $831,695   $811,960 
State   142,369    138,990 
    974,065    950,950 
           
Deferred          
Federal   8,843    24,270 
State   1,513    4,156 
    10,356    28,426 
   $984,421   $979,376 

 

 

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

 

Years ended June 30,  2014  2013
       
Tax at the statutory rate  $885,607   $879,449 
State income taxes,
    net of federal benefit		   94,551    93,894 
Other   4,263    6,033 
   $984,421   $979,376 
           
Effective tax rate   37.8%   37.9%

 

  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:

 

Years ended June 30,  2014  2013
       
Current deferred tax assets:          
Allowance for doubtful accounts  $52,683   $58,327 
Inventory capitalization   29,627    21,063 
Inventory reserves   18,467    19,436 
    100,777    98,826 
           
Noncurrent deferred tax assets (liabilities):          
Equipment and improvements   5,685    4,613 
Franchise, trademarks and other
     intangible assets		   1,282    14,661 
    6,967    19,274 
Total net deferred income tax assets  $107,744   $118,100 

 

 

 

 

As of June 30, 2014, the Company was subject to potential Federal and State tax examinations for the tax years 2010 through 2013.