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.