Heald and Swenson Inc. purchased a drill press for $850,000 one year and nine months ago. The asset has a six-year life and has been depreciated according to the following accelerated schedule.

Year Percent of Cost

1 ................55%

2 ................20%

3 ................10%

4 ..................5%

5 ..................5%

6 ..................5%

The press was just sold for $475,000. The firm’s marginal tax rate is 35%. Calculate Heald and Swenson’s taxable profit and cash flow on the sale. Assume depreciation is spread evenly within each year.