Problem:

Delta Ray Brands Corp. just completed their latest fiscal year. The firm had sales of $17,439,100. Depreciation and amortization was $891,100, interest expense for the year was $827,900, and selling general and administrative expenses totaled $1,477,300 for the year, and cost of goods sold was $9,417,400 for the year.

Required:

Question 1: Assuming a federal income tax rate of 34%, what was the Delta Ray Brands net income after-tax?

Explain comprehensively and show all calculation.