Ellicott Testing Company produced revenues of $745,000 in 2011. It had expenses (excluding depreciation) of $312,640, depreciation

Question:

Ellicott Testing Company produced revenues of $745,000 in 2011. It had expenses (excluding depreciation) of $312,640, depreciation of $65,000, and interest expense of $41,823. It has an average tax rate of 34 percent. What was the firm’s net income after taxes in 2011?