Question

Xyz expects sales of $20,172,000 this year. The cost of goods sold is expected to be $11,505,000 while selling, general and administrative (SGA) expenses are forecast to be $5,783,000.

The firm expects depreciation expenses to be $127,000 and expects to pay an average interest rate of 5.4% on its $4,038,000 of interest-bearing debt.

Given its tax rate of 40%, what is the expected net income for ABC this year?(If it is a negative, be sure and enter a negative sign)