You have been given the following information for Corky’s Bedding Corp.:

a. Net sales = $11,250,000

b. Cost of goods sold = $7,500,000;

c. Other operating expenses = $250,000;

d. Addition to retained earnings = $1,000,000;

e. Dividends paid to preferred and common stockholders = $495,000;

f. Interest expense = $850,000.