At the end of its third year of operations, the Sandifer Manufacturing Co. had $4,500,000 in revenues;

Question:

At the end of its third year of operations, the Sandifer Manufacturing Co. had $4,500,000 in revenues; $3,375,000 in cost of goods sold; $450,000 in operating expenses, which included depreciation expense of $150,000; and had a tax liability equal to 35 percent of the firm’s taxable income. What is the net income of the firm for the year?