Stevens, Inc is developing an asset financing plan. Stevens has $1,000,000 in current assets and $700,000 in fixed assets. The current long-term rate is 8%, and the current short-term rate is 6.5%. Steven's tax rate is 30%.

Construct two financing plans-one conservative, with 65% of assets financed by long-term sources, and the other aggressive, with only 30% of assets financed by long-term sources. If Steven's earnings before interest and taxes are $560,000, calculate net income under each alternative.