operating income as a percentage of sales for fiscal year 2015 was 1.5 percent compared to 3.0 percent for fiscal year 2014 . the decrease in operating income as a percentage of net sales was primarily due to a decrease in gross profit as discussed above . net income for fiscal year 2015 was $ 4.3 million or $ 0.38 per diluted share , as compared to net income of $ 7.6 million or $ 0.67 per diluted share for fiscal year 2014 . the decrease in net income for fiscal year 2015 as compared to fiscal year 2014 was primarily due to a decrease in sales from longstanding customers and an increase in interest expense , partially offset by the positive impact of the ayrshire acquisition . 19 we maintain a strong balance sheet with a current ratio of 2.1 and a debt to equity ratio of 0.43 . total cash provided by operating activities as defined on our cash flow statement was $ 7.7 million during fiscal year 2015 . we maintain sufficient liquidity for our expected future operations . as of june 27 , 2015 , we had $ 11.6 million outstanding on our revolving line of credit with wells fargo bank , n.a . as a result , $ 18.0 million remained available to borrow as of june 27 , 2015 . we believe cash flow from operations , our borrowing capacity , our accounts receivable sale program , and equipment lease financing should provide adequate capital for planned growth over the long term . results of operations comparison of the fiscal year ended june 27 , 2015 with the fiscal year ended june 28 , 2014 the following table sets forth for the periods indicated certain items of the consolidated statements of income expressed as a percentage of net sales . the financial information and discussion below should be read in conjunction with the consolidated financial statements and notes contained in this annual report . replace_table_token_6_th net sales the increase in net sales from prior year was primarily driven by an approximate $ 124.6 million increase in revenue related to ayrshire and by an approximate $ 17.3 million increase in revenues related to new program wins , partially offset by an approximate $ 7.0 million decrease in revenue related to decreased demand from current customer programs and an approximate $ 6.3 million decrease in revenue related to program losses . the following table shows the revenue by industry sectors as a percentage of revenue for fiscal years 2015 and 2014 : replace_table_token_7_th we provide services to customers in a number of industries and produce a variety of products for our customers in each industry . as we continue to diversify our customer base and win new customers , we will continue to see a change in the industry concentrations of our revenue . sales to foreign locations outside the united states represented 30.4 percent and 35.3 percent of our total net sales in fiscal years 2015 and 2014 , respectively . 20 cost of sales total cost of sales as a percentage of net sales was 92.3 percent and 91.2 percent in fiscal years 2015 and 2014 , respectively . total cost of materials as a percentage of net sales was approximately 64.6 percent and 64.5 percent in fiscal years 2015 and 2014 , respectively . the change from year-to-year was relatively flat and resulted from an increase in material cost as a percentage of net sales from certain customers which were partially offset by the lower material costs as a percentage of net sales from ayrshire customers . production and support costs as a percentage of net sales were 27.7 percent and 26.7 percent in fiscal years 2015 and 2014 , respectively . the increase in fiscal year 2015 is primarily related to inefficiencies associated with ramping production of new products that resulted in higher than expected operating expenses during the first quarter of fiscal year 2015. we provide a reserve for obsolete and non-saleable inventories based on specific identification of inventory against current demand and recent usage . the amounts charged to expense for these inventories were approximately $ 0.5 million and $ 0.3 million in fiscal years 2015 and 2014 , respectively . we provide warranties on certain products we sell and estimate warranty costs based on historical experience and anticipated product returns . warranty expense is related to workmanship claims on keyboards and ems products . the amounts charged to expense are determined based on an estimate of warranty exposure . the net warranty expense was approximately $ 115,000 and $ 35,000 in fiscal years 2015 and 2014 , respectively . gross profit gross profit as a percentage of net sales was 7.7 percent and 8.8 percent in fiscal years 2015 , and 2014 , respectively . the 1.1 percentage point decrease in gross profit as a percentage of net sales during fiscal year 2015 as compared to fiscal year 2014 is primarily related to a 1.0 percentage point increase in certain overhead costs and a 0.1 percentage point increase in material costs . changes in gross profit margins reflect the impact of a number of factors that can vary from period to period , including product mix , start-up costs and efficiencies associated with new programs , product life cycles , sales volumes , capacity utilization of our resources , management of inventories , component pricing and shortages , end market demand for customers ' products , fluctuations in and timing of customer orders , and competition within the ems industry . these and other factors can cause variations in operating results . there can be no assurance that gross margins will not decrease in future periods . we took early pay discounts to suppliers that totaled approximately $ 1.5 million and $ 1.1 million in fiscal years 2015 and 2014 , respectively . story_separator_special_tag income taxes income tax expense includes u.s. and international income taxes and the provision for u.s. taxes on undistributed earnings of foreign subsidiaries not deemed to be permanently invested . we do not record u.s. tax liabilities on undistributed earnings of international subsidiaries that are deemed to be permanently reinvested . certain income and expenses are not reported in tax returns and financial statements in the same year . the tax effect of such temporary differences is reported as deferred income taxes . the deferred income taxes are classified as current or long-term based on the classification of the related asset or liability . the most significant areas involving management judgments include deferred income tax assets and liabilities , uncertain tax positions , and research and development tax credits . our estimates of the realization of the deferred tax assets related to our tax credits are based upon our estimates of future taxable income which may change . stock-based compensation stock-based compensation is accounted for according to financial accounting standards board ( fasb ) accounting standards codification ( asc ) 718 , compensation—stock compensation . asc 718 requires us to expense the fair value of employee stock options , stock appreciation rights and other forms of stock-based compensation . under the fair value recognition provisions of asc 718 , share-based compensation cost is estimated at the grant date based upon the fair value of the award and is recognized as expense ratably over the requisite service period of the award ( generally the vesting period ) . determining the appropriate fair value model and calculating the fair value of share-based awards requires judgment , including estimating the expected life of the share-based award , the expected stock price volatility over the expected life of the share-based award and forfeitures . to determine the fair value of stock based awards on the date of grant we use the black-scholes option-pricing model . inherent in this model are assumptions related to expected stock price volatility , option life , risk-free interest rate and dividend yield . the risk-free interest rate is a less-subjective assumption as it is based on factual data derived from public sources . we use a dividend yield of zero as we have never paid cash dividends and have no intention to pay cash dividends in the foreseeable future . the expected stock price volatility and option life assumptions require a greater level of judgment . our expected stock-price volatility assumption is based upon the historical volatility of our stock which is obtained from public data sources . the expected life represents the weighted average period of time that share-based awards are expected to be outstanding , giving consideration to vesting schedules and historical exercise patterns . we determine the expected life assumption based upon the exercise and post-vesting behavior that has been exhibited historically , adjusted for specific factors that may influence future exercise patterns . if expected volatility or expected life were to increase , that would result in an increase in the fair value of our stock options which would result in higher compensation charges , while a decrease in volatility or the expected life would result in a lower fair value of our stock option awards resulting in lower compensation charges . we estimate forfeitures for all of our awards based upon historical experience of stock-based pre-vesting forfeitures . we believe that our estimates are based upon outcomes that are reasonably likely to occur . if actual forfeitures are higher than our estimates it would result in lower compensation expense and to the extent the actual forfeitures are lower than our estimate we would record higher compensation expense . impairment of long-lived assets long-lived assets , such as property , plant , and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable . the recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset . if the carrying amount of an asset exceeds its estimated undiscounted future cash flows , an impairment charge would be recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset . 28 derivatives and hedging activity derivatives are recognized on the balance sheet at their estimated fair value . on the date a derivative contract is entered into , the company designates the derivative as a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability ( a “ cash flow ” hedge ) . the company does not enter into derivatives for speculative purposes . changes in the fair value of a derivative that qualifies as a cash flow hedge are recorded in “ accumulated other comprehensive income ” , until earnings are affected by the variability of cash flows . see note 11 of the company 's consolidated financial statements for additional information . long-term incentive compensation accrual long-term incentive compensation is recognized as expense ratably over the requisite service period of the award which is generally three years . the board of directors approve target performance measures for the three year period for each of the company 's officers and non-employee directors . performance measures are based on a combination of sales growth targets and return on invested capital targets . no cash awards will be made to participants if actual company performance does not exceed the minimum target performance measures . the calculation used to determine the necessary accrual uses a combination of actual results and projected results . we believe that our estimates are based upon outcomes that are reasonably likely to occur . these estimates and assumptions are based on historical results as well as future expectations . actual results could vary from

capital resources and liquidity operating cash flow net cash provided by operating activities for fiscal year 2015 was $ 7.7 million compared to net cash provided by operating activities of $ 1.5 million and $ 29.3 million in fiscal years 2014 and 2013 , respectively . the working capital year-over-year change is primarily related to an $ 18.0 million increase in accounts payable , offset by a $ 14.7 million increase in inventory and a $ 2.1 million increase in accounts receivable after the $ 7.3 million impact of factoring . the working capital changes during fiscal year 2014 were primarily due to a $ 10.5 million increase in inventory , a $ 2.7 million increase in accounts receivable , partially offset by a $ 6.1 million increase in accounts payable . the working capital changes during fiscal year 2013 are primarily due to a $ 13.3 million decrease in inventory and a $ 13.6 million decrease in accounts receivable , which were partially offset by a $ 16.6 million decrease in accounts payable . accounts receivable fluctuates based on the timing of shipments , terms offered and collections . in addition , accounts receivable will fluctuate based upon the amount of accounts receivable sold under our trade accounts receivable purchase program . during fiscal year 2015 , we received cash proceeds of $ 7.3 million from accounts receivable sold to wfb , which are not included on our consolidated balance sheet . the company did not have the trade accounts receivable purchase program during fiscal year 2014 . we purchase inventory based on customer forecasts and orders , and when those forecasts and orders change , the amount of inventory may also fluctuate . accounts payable fluctuates with changes in inventory levels , volume of inventory purchases , negotiated supplier terms , and taking advantage of early pay discounts . investing cash flow cash flows used in investing activities were $ 48.1 million , $ 13.8 million , and $ 3.3 million in fiscal years 2015 , 2014 and 2013 , respectively .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```capital resources and liquidity operating cash flow net cash provided by operating activities for fiscal year 2015 was $ 7.7 million compared to net cash provided by operating activities of $ 1.5 million and $ 29.3 million in fiscal years 2014 and 2013 , respectively . the working capital year-over-year change is primarily related to an $ 18.0 million increase in accounts payable , offset by a $ 14.7 million increase in inventory and a $ 2.1 million increase in accounts receivable after the $ 7.3 million impact of factoring . the working capital changes during fiscal year 2014 were primarily due to a $ 10.5 million increase in inventory , a $ 2.7 million increase in accounts receivable , partially offset by a $ 6.1 million increase in accounts payable . the working capital changes during fiscal year 2013 are primarily due to a $ 13.3 million decrease in inventory and a $ 13.6 million decrease in accounts receivable , which were partially offset by a $ 16.6 million decrease in accounts payable . accounts receivable fluctuates based on the timing of shipments , terms offered and collections . in addition , accounts receivable will fluctuate based upon the amount of accounts receivable sold under our trade accounts receivable purchase program . during fiscal year 2015 , we received cash proceeds of $ 7.3 million from accounts receivable sold to wfb , which are not included on our consolidated balance sheet . the company did not have the trade accounts receivable purchase program during fiscal year 2014 . we purchase inventory based on customer forecasts and orders , and when those forecasts and orders change , the amount of inventory may also fluctuate . accounts payable fluctuates with changes in inventory levels , volume of inventory purchases , negotiated supplier terms , and taking advantage of early pay discounts . investing cash flow cash flows used in investing activities were $ 48.1 million , $ 13.8 million , and $ 3.3 million in fiscal years 2015 , 2014 and 2013 , respectively .
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 Suspicious Activity Report : operating income as a percentage of sales for fiscal year 2015 was 1.5 percent compared to 3.0 percent for fiscal year 2014 . the decrease in operating income as a percentage of net sales was primarily due to a decrease in gross profit as discussed above . net income for fiscal year 2015 was $ 4.3 million or $ 0.38 per diluted share , as compared to net income of $ 7.6 million or $ 0.67 per diluted share for fiscal year 2014 . the decrease in net income for fiscal year 2015 as compared to fiscal year 2014 was primarily due to a decrease in sales from longstanding customers and an increase in interest expense , partially offset by the positive impact of the ayrshire acquisition . 19 we maintain a strong balance sheet with a current ratio of 2.1 and a debt to equity ratio of 0.43 . total cash provided by operating activities as defined on our cash flow statement was $ 7.7 million during fiscal year 2015 . we maintain sufficient liquidity for our expected future operations . as of june 27 , 2015 , we had $ 11.6 million outstanding on our revolving line of credit with wells fargo bank , n.a . as a result , $ 18.0 million remained available to borrow as of june 27 , 2015 . we believe cash flow from operations , our borrowing capacity , our accounts receivable sale program , and equipment lease financing should provide adequate capital for planned growth over the long term . results of operations comparison of the fiscal year ended june 27 , 2015 with the fiscal year ended june 28 , 2014 the following table sets forth for the periods indicated certain items of the consolidated statements of income expressed as a percentage of net sales . the financial information and discussion below should be read in conjunction with the consolidated financial statements and notes contained in this annual report . replace_table_token_6_th net sales the increase in net sales from prior year was primarily driven by an approximate $ 124.6 million increase in revenue related to ayrshire and by an approximate $ 17.3 million increase in revenues related to new program wins , partially offset by an approximate $ 7.0 million decrease in revenue related to decreased demand from current customer programs and an approximate $ 6.3 million decrease in revenue related to program losses . the following table shows the revenue by industry sectors as a percentage of revenue for fiscal years 2015 and 2014 : replace_table_token_7_th we provide services to customers in a number of industries and produce a variety of products for our customers in each industry . as we continue to diversify our customer base and win new customers , we will continue to see a change in the industry concentrations of our revenue . sales to foreign locations outside the united states represented 30.4 percent and 35.3 percent of our total net sales in fiscal years 2015 and 2014 , respectively . 20 cost of sales total cost of sales as a percentage of net sales was 92.3 percent and 91.2 percent in fiscal years 2015 and 2014 , respectively . total cost of materials as a percentage of net sales was approximately 64.6 percent and 64.5 percent in fiscal years 2015 and 2014 , respectively . the change from year-to-year was relatively flat and resulted from an increase in material cost as a percentage of net sales from certain customers which were partially offset by the lower material costs as a percentage of net sales from ayrshire customers . production and support costs as a percentage of net sales were 27.7 percent and 26.7 percent in fiscal years 2015 and 2014 , respectively . the increase in fiscal year 2015 is primarily related to inefficiencies associated with ramping production of new products that resulted in higher than expected operating expenses during the first quarter of fiscal year 2015. we provide a reserve for obsolete and non-saleable inventories based on specific identification of inventory against current demand and recent usage . the amounts charged to expense for these inventories were approximately $ 0.5 million and $ 0.3 million in fiscal years 2015 and 2014 , respectively . we provide warranties on certain products we sell and estimate warranty costs based on historical experience and anticipated product returns . warranty expense is related to workmanship claims on keyboards and ems products . the amounts charged to expense are determined based on an estimate of warranty exposure . the net warranty expense was approximately $ 115,000 and $ 35,000 in fiscal years 2015 and 2014 , respectively . gross profit gross profit as a percentage of net sales was 7.7 percent and 8.8 percent in fiscal years 2015 , and 2014 , respectively . the 1.1 percentage point decrease in gross profit as a percentage of net sales during fiscal year 2015 as compared to fiscal year 2014 is primarily related to a 1.0 percentage point increase in certain overhead costs and a 0.1 percentage point increase in material costs . changes in gross profit margins reflect the impact of a number of factors that can vary from period to period , including product mix , start-up costs and efficiencies associated with new programs , product life cycles , sales volumes , capacity utilization of our resources , management of inventories , component pricing and shortages , end market demand for customers ' products , fluctuations in and timing of customer orders , and competition within the ems industry . these and other factors can cause variations in operating results . there can be no assurance that gross margins will not decrease in future periods . we took early pay discounts to suppliers that totaled approximately $ 1.5 million and $ 1.1 million in fiscal years 2015 and 2014 , respectively . story_separator_special_tag income taxes income tax expense includes u.s. and international income taxes and the provision for u.s. taxes on undistributed earnings of foreign subsidiaries not deemed to be permanently invested . we do not record u.s. tax liabilities on undistributed earnings of international subsidiaries that are deemed to be permanently reinvested . certain income and expenses are not reported in tax returns and financial statements in the same year . the tax effect of such temporary differences is reported as deferred income taxes . the deferred income taxes are classified as current or long-term based on the classification of the related asset or liability . the most significant areas involving management judgments include deferred income tax assets and liabilities , uncertain tax positions , and research and development tax credits . our estimates of the realization of the deferred tax assets related to our tax credits are based upon our estimates of future taxable income which may change . stock-based compensation stock-based compensation is accounted for according to financial accounting standards board ( fasb ) accounting standards codification ( asc ) 718 , compensation—stock compensation . asc 718 requires us to expense the fair value of employee stock options , stock appreciation rights and other forms of stock-based compensation . under the fair value recognition provisions of asc 718 , share-based compensation cost is estimated at the grant date based upon the fair value of the award and is recognized as expense ratably over the requisite service period of the award ( generally the vesting period ) . determining the appropriate fair value model and calculating the fair value of share-based awards requires judgment , including estimating the expected life of the share-based award , the expected stock price volatility over the expected life of the share-based award and forfeitures . to determine the fair value of stock based awards on the date of grant we use the black-scholes option-pricing model . inherent in this model are assumptions related to expected stock price volatility , option life , risk-free interest rate and dividend yield . the risk-free interest rate is a less-subjective assumption as it is based on factual data derived from public sources . we use a dividend yield of zero as we have never paid cash dividends and have no intention to pay cash dividends in the foreseeable future . the expected stock price volatility and option life assumptions require a greater level of judgment . our expected stock-price volatility assumption is based upon the historical volatility of our stock which is obtained from public data sources . the expected life represents the weighted average period of time that share-based awards are expected to be outstanding , giving consideration to vesting schedules and historical exercise patterns . we determine the expected life assumption based upon the exercise and post-vesting behavior that has been exhibited historically , adjusted for specific factors that may influence future exercise patterns . if expected volatility or expected life were to increase , that would result in an increase in the fair value of our stock options which would result in higher compensation charges , while a decrease in volatility or the expected life would result in a lower fair value of our stock option awards resulting in lower compensation charges . we estimate forfeitures for all of our awards based upon historical experience of stock-based pre-vesting forfeitures . we believe that our estimates are based upon outcomes that are reasonably likely to occur . if actual forfeitures are higher than our estimates it would result in lower compensation expense and to the extent the actual forfeitures are lower than our estimate we would record higher compensation expense . impairment of long-lived assets long-lived assets , such as property , plant , and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable . the recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset . if the carrying amount of an asset exceeds its estimated undiscounted future cash flows , an impairment charge would be recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset . 28 derivatives and hedging activity derivatives are recognized on the balance sheet at their estimated fair value . on the date a derivative contract is entered into , the company designates the derivative as a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability ( a “ cash flow ” hedge ) . the company does not enter into derivatives for speculative purposes . changes in the fair value of a derivative that qualifies as a cash flow hedge are recorded in “ accumulated other comprehensive income ” , until earnings are affected by the variability of cash flows . see note 11 of the company 's consolidated financial statements for additional information . long-term incentive compensation accrual long-term incentive compensation is recognized as expense ratably over the requisite service period of the award which is generally three years . the board of directors approve target performance measures for the three year period for each of the company 's officers and non-employee directors . performance measures are based on a combination of sales growth targets and return on invested capital targets . no cash awards will be made to participants if actual company performance does not exceed the minimum target performance measures . the calculation used to determine the necessary accrual uses a combination of actual results and projected results . we believe that our estimates are based upon outcomes that are reasonably likely to occur . these estimates and assumptions are based on historical results as well as future expectations . actual results could vary from

