the current ratio was 2.7 to 1 at june 30 , 2019 and 2.4 to 1 at june 30 , 2018 . applied monitors several economic indices that have been key indicators for industrial economic activity in the united states . these include the industrial production ( ip ) and manufacturing capacity utilization ( mcu ) indices published by the federal reserve board and the purchasing managers index ( pmi ) published by the institute for supply management ( ism ) . historically , our performance correlates well with the mcu , which measures productivity and calculates a ratio of actual manufacturing output versus potential full capacity output . when manufacturing plants are running at a high rate of capacity , they tend to wear out machinery and require replacement parts . 15 the mcu ( total industry ) and ip indices have gradually decreased during the second half of fiscal 2019 correlating with an overall decline in the industrial economy in the same period . the ism pmi registered 51.7 in june 2019 , a decrease from the june 2018 revised reading of 60.0. a reading above 50 generally indicates expansion . the index readings for the months during the current quarter , along with the revised indices for previous quarter ends , were as follows : replace_table_token_1_th results of operations this discussion and analysis deals with comparisons of material changes in the consolidated financial statements for the years ended june 30 , 2019 and 2018 . for the comparison of the years ended june 30 , 2018 and 2017 , see the management 's discussion and analysis of financial condition and results of operations in part ii , item 7 of our 2018 annual report on form 10-k. the following table is included to aid in review of applied 's statements of consolidated income . replace_table_token_2_th sales in fiscal 2019 were $ 3.5 billion , which was $ 399.5 million or 13.0 % above the prior year , with sales from acquisitions accounting for $ 360.0 million or 11.7 % of the increase , and unfavorable foreign currency translation accounting for a decrease of $ 19.2 million or 0.6 % . there were 251.5 selling days in both fiscal 2019 and fiscal 2018 . excluding the impact of businesses acquired and the impact of foreign currency translation , sales were up $ 58.7 million or 1.9 % during the year , which is driven by growth of 3.5 % from the service center based distribution segment , offset by a 1.6 % decline from the fluid power & flow control segment . the following table shows changes in sales by reportable segment . replace_table_token_3_th sales of our service center based distribution segment , which operates primarily in mro markets , increased $ 106.5 million , or 4.5 % . acquisitions within this segment increased sales by $ 17.6 million or 0.7 % , and unfavorable foreign currency translation decreased sales by $ 19.2 million or 0.8 % . excluding the impact of businesses acquired and the impact of foreign currency translation , sales increased $ 108.1 million or 4.6 % due to overall growth in the industrial economy . 16 sales of our fluid power & flow control segment increased $ 293.0 million or 40.3 % . acquisitions within this segment , primarily fcx , increased sales $ 342.4 million or 47.1 % . excluding the impact of businesses acquired , sales decreased $ 49.4 million or 6.8 % . the decrease from operations is primarily due to softness and project delays in our fluid power businesses tied to technology markets , specifically electronic equipment and component manufacturers , as well as slower demand in our flow control operations . the following table shows changes in sales by geographical area . other countries includes mexico , australia , new zealand , and singapore . replace_table_token_4_th sales in our u.s. operations increased $ 401.7 million or 15.4 % , with acquisitions adding $ 360.0 million or 13.8 % . excluding the impact of businesses acquired , u.s. sales were up $ 41.7 million or 1.6 % . sales from our canadian operations decreased $ 2.3 million or 0.8 % , and unfavorable foreign currency translation decreased canadian sales by $ 11.5 million or 4.2 % . excluding the impact of foreign currency translation , canadian sales were up $ 9.2 million or 3.4 % , of which 4.2 % is growth from operations , offset by a 0.8 % decrease due to two less sales days . consolidated sales from our other country operations increased $ 0.1 million compared to the prior year . unfavorable foreign currency translation decreased other country sales by $ 7.7 million or 4.2 % . excluding the impact of foreign currency translation , other country sales were up $ 7.8 million or 4.2 % compared to the prior year . our gross profit margin increased to 29.0 % in fiscal 2019 compared to 28.8 % in fiscal 2018 primarily due to the impact of acquisitions , which favorably impacted the gross profit margin by 48 basis points in fiscal 2019 , offset by an unfavorable impact of 26 basis points from the change in lifo expense in fiscal 2019 compared to fiscal 2018 . the following table shows the changes in selling , distribution , and administrative expense ( sd & a ) . replace_table_token_5_th sd & a consists of associate compensation , benefits and other expenses associated with selling , purchasing , warehousing , supply chain management , and marketing and distribution of the company 's products , as well as costs associated with a variety of administrative functions such as human resources , information technology , treasury , accounting , insurance , legal , facility related expenses and expenses incurred in acquiring businesses . story_separator_special_tag goodwill for acquired businesses is accounted for using the acquisition method of accounting which requires that the assets acquired and liabilities assumed be recorded at the date of the acquisition at their respective estimated fair values . the determination of the value of the intangible assets acquired involves certain judgments and estimates . these judgments can include , but are not limited to , the cash flows that an asset is expected to generate in the future and the appropriate weighted average cost of capital . the judgments made in determining the estimated fair value assigned to each class of assets acquired , as well as the estimated life of each asset , can materially impact the net income of the periods subsequent to the acquisition through depreciation and amortization , and in certain instances through impairment charges , if the asset becomes impaired in the future . as part of acquisition accounting , we recognize acquired identifiable intangible assets such as customer relationships , vendor relationships , trade names , and non-competition agreements apart from goodwill . finite-lived identifiable intangibles are evaluated for impairment when changes in conditions indicate carrying value may not be recoverable . we evaluate goodwill for impairment at the reporting unit level annually as of january 1 , and whenever an event occurs or circumstances change that would indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying amount . events or circumstances that may result in an impairment review include changes in macroeconomic conditions , industry and market considerations , cost factors , overall financial performance , other relevant entity-specific events , specific events affecting the reporting unit or sustained decrease in share price . each year , the company may elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value . if impairment is indicated in the qualitative assessment , or , if management elects to initially perform a quantitative assessment of goodwill , the impairment test uses a one-step approach . the fair value of a reporting unit is compared with its carrying amount , 22 including goodwill . if the fair value of the reporting unit exceeds its carrying amount , goodwill of the reporting unit is not impaired . if the carrying amount of a reporting unit exceeds its fair value , an impairment charge would be recognized for the amount by which the carrying amount exceeds the reporting unit 's fair value , not to exceed the total amount of goodwill allocated to that reporting unit . goodwill on our consolidated financial statements relates to both the service center based distribution segment and the fluid power & flow control segment . the company has seven reporting units for which an annual goodwill impairment assessment was performed as of january 1 , 2019. the company concluded that all of the reporting units ' fair value exceeded their carrying amounts by at least 20 % as of january 1 , 2019. as of june 30 , 2019 , the company 's goodwill balance was $ 662.0 million , of which $ 28.3 million relates to the canada reporting unit . as of january 1 , 2019 , the fair value of the canada reporting unit exceeded the carrying value by 25.0 % . if the company does not achieve the forecasted sales growth and margin improvements goodwill could be impaired . the fair values of the reporting units in accordance with the goodwill impairment test were determined using the income and market approaches . the income approach employs the discounted cash flow method reflecting projected cash flows expected to be generated by market participants and then adjusted for time value of money factors , and requires management to make significant estimates and assumptions related to forecasts of future revenues , operating margins , and discount rates . the market approach utilizes an analysis of comparable publicly traded companies and requires management to make significant estimates and assumptions related to the forecasts of future revenues , earnings before interest , taxes , depreciation , and amortization ( ebitda ) and multiples that are applied to management 's forecasted revenues and ebitda estimates . changes in future results , assumptions , and estimates after the measurement date may lead to an outcome where additional impairment charges would be required in future periods . specifically , actual results may vary from the company 's forecasts and such variations may be material and unfavorable , thereby triggering the need for future impairment tests where the conclusions may differ in reflection of prevailing market conditions . further , continued adverse market conditions could result in the recognition of additional impairment if the company determines that the fair values of its reporting units have fallen below their carrying values . income taxes deferred income taxes are recorded for estimated future tax effects of differences between the bases of assets and liabilities for financial reporting and income tax purposes , giving consideration to enacted tax laws . as of june 30 , 2019 , the company had recognized $ 54.5 million of net deferred tax liabilities . valuation allowances are provided against deferred tax assets where it is considered more-likely-than-not that the company will not realize the benefit of such assets on a jurisdiction by jurisdiction basis . the remaining net deferred tax asset is the amount management believes is more-likely-than-not of being realized . the realization of these deferred tax assets can be impacted by changes to tax laws , statutory rates and future taxable income levels . 23 cautionary statement under private securities litigation reform act this form 10-k , including management 's discussion and analysis , contains statements that are forward-looking based on management 's current expectations about the future . forward-looking statements are often identified by qualifiers , such as “ guidance ” ,

liquidity and capital resources our primary source of capital is cash flow from operations , supplemented as necessary by bank borrowings or other sources of debt . at june 30 , 2019 we had total debt obligations outstanding of $ 959.8 million compared to $ 966.1 million at june 30 , 2018 . management expects that our existing cash , cash equivalents , funds available under the revolving credit facility , and cash provided from operations , will be sufficient to finance normal working capital needs in each of the countries we operate in , payment of dividends , acquisitions , investments in properties , facilities and equipment , debt service , and the purchase of additional company common stock . management also believes that additional long-term debt and line of credit financing could be obtained based on the company 's credit standing and financial strength . the company 's working capital at june 30 , 2019 was $ 724.3 million compared to $ 625.5 million at june 30 , 2018 . the current ratio was 2.7 to 1 at june 30 , 2019 and 2.4 to 1 at june 30 , 2018 . the increase is primarily driven by a higher cash balance at june 30 , 2019 . 18 net cash flows the following table is included to aid in review of applied 's statements of consolidated cash flows ; all amounts are in thousands . replace_table_token_6_th the increase in cash provided by operating activities during fiscal 2019 is primarily due to the impact of acquisitions along with improved operating results , offset by changes in working capital . net cash used in investing activities in fiscal 2019 included $ 37.5 million used for the acquisitions of fps , milroc and woodward , and $ 19.0 million used for capital expenditures .


 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.
     ```liquidity and capital resources our primary source of capital is cash flow from operations , supplemented as necessary by bank borrowings or other sources of debt . at june 30 , 2019 we had total debt obligations outstanding of $ 959.8 million compared to $ 966.1 million at june 30 , 2018 . management expects that our existing cash , cash equivalents , funds available under the revolving credit facility , and cash provided from operations , will be sufficient to finance normal working capital needs in each of the countries we operate in , payment of dividends , acquisitions , investments in properties , facilities and equipment , debt service , and the purchase of additional company common stock . management also believes that additional long-term debt and line of credit financing could be obtained based on the company 's credit standing and financial strength . the company 's working capital at june 30 , 2019 was $ 724.3 million compared to $ 625.5 million at june 30 , 2018 . the current ratio was 2.7 to 1 at june 30 , 2019 and 2.4 to 1 at june 30 , 2018 . the increase is primarily driven by a higher cash balance at june 30 , 2019 . 18 net cash flows the following table is included to aid in review of applied 's statements of consolidated cash flows ; all amounts are in thousands . replace_table_token_6_th the increase in cash provided by operating activities during fiscal 2019 is primarily due to the impact of acquisitions along with improved operating results , offset by changes in working capital . net cash used in investing activities in fiscal 2019 included $ 37.5 million used for the acquisitions of fps , milroc and woodward , and $ 19.0 million used for capital expenditures .
```    
 Suspicious Activity Report : the current ratio was 2.7 to 1 at june 30 , 2019 and 2.4 to 1 at june 30 , 2018 . applied monitors several economic indices that have been key indicators for industrial economic activity in the united states . these include the industrial production ( ip ) and manufacturing capacity utilization ( mcu ) indices published by the federal reserve board and the purchasing managers index ( pmi ) published by the institute for supply management ( ism ) . historically , our performance correlates well with the mcu , which measures productivity and calculates a ratio of actual manufacturing output versus potential full capacity output . when manufacturing plants are running at a high rate of capacity , they tend to wear out machinery and require replacement parts . 15 the mcu ( total industry ) and ip indices have gradually decreased during the second half of fiscal 2019 correlating with an overall decline in the industrial economy in the same period . the ism pmi registered 51.7 in june 2019 , a decrease from the june 2018 revised reading of 60.0. a reading above 50 generally indicates expansion . the index readings for the months during the current quarter , along with the revised indices for previous quarter ends , were as follows : replace_table_token_1_th results of operations this discussion and analysis deals with comparisons of material changes in the consolidated financial statements for the years ended june 30 , 2019 and 2018 . for the comparison of the years ended june 30 , 2018 and 2017 , see the management 's discussion and analysis of financial condition and results of operations in part ii , item 7 of our 2018 annual report on form 10-k. the following table is included to aid in review of applied 's statements of consolidated income . replace_table_token_2_th sales in fiscal 2019 were $ 3.5 billion , which was $ 399.5 million or 13.0 % above the prior year , with sales from acquisitions accounting for $ 360.0 million or 11.7 % of the increase , and unfavorable foreign currency translation accounting for a decrease of $ 19.2 million or 0.6 % . there were 251.5 selling days in both fiscal 2019 and fiscal 2018 . excluding the impact of businesses acquired and the impact of foreign currency translation , sales were up $ 58.7 million or 1.9 % during the year , which is driven by growth of 3.5 % from the service center based distribution segment , offset by a 1.6 % decline from the fluid power & flow control segment . the following table shows changes in sales by reportable segment . replace_table_token_3_th sales of our service center based distribution segment , which operates primarily in mro markets , increased $ 106.5 million , or 4.5 % . acquisitions within this segment increased sales by $ 17.6 million or 0.7 % , and unfavorable foreign currency translation decreased sales by $ 19.2 million or 0.8 % . excluding the impact of businesses acquired and the impact of foreign currency translation , sales increased $ 108.1 million or 4.6 % due to overall growth in the industrial economy . 16 sales of our fluid power & flow control segment increased $ 293.0 million or 40.3 % . acquisitions within this segment , primarily fcx , increased sales $ 342.4 million or 47.1 % . excluding the impact of businesses acquired , sales decreased $ 49.4 million or 6.8 % . the decrease from operations is primarily due to softness and project delays in our fluid power businesses tied to technology markets , specifically electronic equipment and component manufacturers , as well as slower demand in our flow control operations . the following table shows changes in sales by geographical area . other countries includes mexico , australia , new zealand , and singapore . replace_table_token_4_th sales in our u.s. operations increased $ 401.7 million or 15.4 % , with acquisitions adding $ 360.0 million or 13.8 % . excluding the impact of businesses acquired , u.s. sales were up $ 41.7 million or 1.6 % . sales from our canadian operations decreased $ 2.3 million or 0.8 % , and unfavorable foreign currency translation decreased canadian sales by $ 11.5 million or 4.2 % . excluding the impact of foreign currency translation , canadian sales were up $ 9.2 million or 3.4 % , of which 4.2 % is growth from operations , offset by a 0.8 % decrease due to two less sales days . consolidated sales from our other country operations increased $ 0.1 million compared to the prior year . unfavorable foreign currency translation decreased other country sales by $ 7.7 million or 4.2 % . excluding the impact of foreign currency translation , other country sales were up $ 7.8 million or 4.2 % compared to the prior year . our gross profit margin increased to 29.0 % in fiscal 2019 compared to 28.8 % in fiscal 2018 primarily due to the impact of acquisitions , which favorably impacted the gross profit margin by 48 basis points in fiscal 2019 , offset by an unfavorable impact of 26 basis points from the change in lifo expense in fiscal 2019 compared to fiscal 2018 . the following table shows the changes in selling , distribution , and administrative expense ( sd & a ) . replace_table_token_5_th sd & a consists of associate compensation , benefits and other expenses associated with selling , purchasing , warehousing , supply chain management , and marketing and distribution of the company 's products , as well as costs associated with a variety of administrative functions such as human resources , information technology , treasury , accounting , insurance , legal , facility related expenses and expenses incurred in acquiring businesses . story_separator_special_tag goodwill for acquired businesses is accounted for using the acquisition method of accounting which requires that the assets acquired and liabilities assumed be recorded at the date of the acquisition at their respective estimated fair values . the determination of the value of the intangible assets acquired involves certain judgments and estimates . these judgments can include , but are not limited to , the cash flows that an asset is expected to generate in the future and the appropriate weighted average cost of capital . the judgments made in determining the estimated fair value assigned to each class of assets acquired , as well as the estimated life of each asset , can materially impact the net income of the periods subsequent to the acquisition through depreciation and amortization , and in certain instances through impairment charges , if the asset becomes impaired in the future . as part of acquisition accounting , we recognize acquired identifiable intangible assets such as customer relationships , vendor relationships , trade names , and non-competition agreements apart from goodwill . finite-lived identifiable intangibles are evaluated for impairment when changes in conditions indicate carrying value may not be recoverable . we evaluate goodwill for impairment at the reporting unit level annually as of january 1 , and whenever an event occurs or circumstances change that would indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying amount . events or circumstances that may result in an impairment review include changes in macroeconomic conditions , industry and market considerations , cost factors , overall financial performance , other relevant entity-specific events , specific events affecting the reporting unit or sustained decrease in share price . each year , the company may elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value . if impairment is indicated in the qualitative assessment , or , if management elects to initially perform a quantitative assessment of goodwill , the impairment test uses a one-step approach . the fair value of a reporting unit is compared with its carrying amount , 22 including goodwill . if the fair value of the reporting unit exceeds its carrying amount , goodwill of the reporting unit is not impaired . if the carrying amount of a reporting unit exceeds its fair value , an impairment charge would be recognized for the amount by which the carrying amount exceeds the reporting unit 's fair value , not to exceed the total amount of goodwill allocated to that reporting unit . goodwill on our consolidated financial statements relates to both the service center based distribution segment and the fluid power & flow control segment . the company has seven reporting units for which an annual goodwill impairment assessment was performed as of january 1 , 2019. the company concluded that all of the reporting units ' fair value exceeded their carrying amounts by at least 20 % as of january 1 , 2019. as of june 30 , 2019 , the company 's goodwill balance was $ 662.0 million , of which $ 28.3 million relates to the canada reporting unit . as of january 1 , 2019 , the fair value of the canada reporting unit exceeded the carrying value by 25.0 % . if the company does not achieve the forecasted sales growth and margin improvements goodwill could be impaired . the fair values of the reporting units in accordance with the goodwill impairment test were determined using the income and market approaches . the income approach employs the discounted cash flow method reflecting projected cash flows expected to be generated by market participants and then adjusted for time value of money factors , and requires management to make significant estimates and assumptions related to forecasts of future revenues , operating margins , and discount rates . the market approach utilizes an analysis of comparable publicly traded companies and requires management to make significant estimates and assumptions related to the forecasts of future revenues , earnings before interest , taxes , depreciation , and amortization ( ebitda ) and multiples that are applied to management 's forecasted revenues and ebitda estimates . changes in future results , assumptions , and estimates after the measurement date may lead to an outcome where additional impairment charges would be required in future periods . specifically , actual results may vary from the company 's forecasts and such variations may be material and unfavorable , thereby triggering the need for future impairment tests where the conclusions may differ in reflection of prevailing market conditions . further , continued adverse market conditions could result in the recognition of additional impairment if the company determines that the fair values of its reporting units have fallen below their carrying values . income taxes deferred income taxes are recorded for estimated future tax effects of differences between the bases of assets and liabilities for financial reporting and income tax purposes , giving consideration to enacted tax laws . as of june 30 , 2019 , the company had recognized $ 54.5 million of net deferred tax liabilities . valuation allowances are provided against deferred tax assets where it is considered more-likely-than-not that the company will not realize the benefit of such assets on a jurisdiction by jurisdiction basis . the remaining net deferred tax asset is the amount management believes is more-likely-than-not of being realized . the realization of these deferred tax assets can be impacted by changes to tax laws , statutory rates and future taxable income levels . 23 cautionary statement under private securities litigation reform act this form 10-k , including management 's discussion and analysis , contains statements that are forward-looking based on management 's current expectations about the future . forward-looking statements are often identified by qualifiers , such as “ guidance ” ,

