Question: If GMT Transport Company (from the previous problem) plans to reinvest $1 million of its earnings back in the firm and pay out the remainder

If GMT Transport Company (from the previous problem) plans to reinvest $1 million of its earnings back in the firm and pay out the remainder in cash dividends to the firm's shareholders, what is the total amount of the cash dividend?

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GMT Transport Company ended the year with record sales of $18 million. The firm's cost of goods sold totaled $10.8 million while its operating expenses (including depreciation) totaled $4 million. GMT paid $1.5 million in interest expense and had an income tax liability of $595,000. Calculate the firm's net income for the year?

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