Income Taxes (Tables)

12 Months Ended

Mar. 31, 2019

Income Taxes

Effective Income Tax Rate Reconciliation

	2019		2018		2017
Statutory federal rate	21.0	%	31.3	%	34.0	%
State taxes, net of federal benefit	3.5		4.0		4.6
Non-deductible expenses	2.1		4.4		5.4
Change in uncertain tax positions	(4.6)		—		—
Change in valuation allowance	1.9		—		—
Change in deferred tax related to key man life insurance	—		(7.3)		—
Other	—		(1.9)		(2.1)
Effective rate	23.9	%	30.5	%	41.9	%

Provision for Income Taxes

	2019		2018		2017
Federal:    Current	$	1,037,600	$	3,073,400	$	1,083,600
Deferred		576,200		(1,081,600)		(69,100)
State:        Current		52,600		433,400		53,100
Deferred		79,000		(148,000)		(26,400)
Provision for income taxes	$	1,745,400	$	2,277,200	$	1,041,200

Deferred Tax Assets and Liabilities

	2019		2018
Deferred tax assets :
Deferred compensation	$	267,300	$	160,600
Accrued vacation		312,300		340,200
Deferred rent		34,500		37,200
Allowance for doubtful accounts		488,000		249,700
Inventory reserves		1,406,100		1,414,600
Sales tax reserves		192,900		217,500
Sales return assets		478,600		—
Other liabilities		205,700		—
Net operating loss		141,600		—
Tax contingency reserve		—		83,400
Other assets		652,800		1,364,900
		4,179,800		3,868,100
Valuation allowance		(141,600)		—
Total deferred tax assets		4,038,200		3,868,100
Deferred tax liabilities :
Depreciation and amortization		(3,094,000)		(2,542,800)
Sales return liabilities		(365,200)		—
Prepaid expenses		(523,700)		(614,800)
Total deferred tax liabilities		(3,982,900)		(3,157,600)
Net Deferred Tax Assets	$	55,300	$	710,500

Reconciliation of changes in unrecognized tax benefit amounts, net of interest

	2019		2018		2017
Beginning balance of unrecognized tax benefit	$	112,700	$	204,500	$	290,400
Increases related to current period tax positions		3,500		—		3,100
Reductions as a result of a lapse in the applicable statute of limitations		(116,200)		(91,800)		(89,000)
Ending balance of unrecognized tax benefits	$	—	$	112,700	$	204,500