Income Taxes (Tables)

12 Months Ended

Jun. 30, 2013

Income Taxes Tables

Schedule of components of income taxes

The following are the components of income taxes:

Years ended June 30,	2013		2012
Current
Federal	$	811,960	$	248,257
State		138,990		42,497
		950,950		290,754
Deferred
Federal		24,270		21,988
State		4,156		3,764
		28,426		25,752
	$	979,376	$	316,506

Schedule of reconciliation of income tax expense

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,	2013			2012
Tax at the statutory rate	$	879,449		$	281,586
State income taxes, net of federal benefit		93,894			30,064
Other		6,033			4,856
	$	979,376		$	316,506
Effective tax rate		37.9	%		38.2	%

Schedule of deferred tax assets and liabilities

Significant components of the Company’s current and noncurrent deferred tax assets and liabilities are as follows:

Years ended June 30,	2013		2012
Current deferred tax assets:
Allowance for doubtful accounts	$	58,327	$	58,327
Inventory capitalization		21,063		34,234
Inventory reserves		19,436		26,902
		98,826		119,463
Noncurrent deferred tax assets (liabilities):
Equipment and improvements		4,613		(1,890	)
Franchise, trademarks and other intangible assets		14,661		28,953
		19,274		27,063
Total net deferred income tax assets	$	118,100	$	146,526