1. Patterson Brothers recently reported an EBITDA of $15.5 million and net income of $2.325 million. It had $1.5 million of interest expense, and its corporate tax rate was 25%. What was its charge for depreciation and amortization? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Do not round intermediate calculations. Round your answer to the nearest dollar, if necessary.

$ ____

2. Edmonds Industries is forecasting the following income statement:

Sales	$6,000,000
Operating costs excluding depreciation & amortization	3,300,000
EBITDA	$2,700,000
Depreciation and amortization	900,000
EBIT	$1,800,000
Interest	600,000
EBT	$1,200,000
Taxes (25%)	300,000
Net income	$900,000

The CEO would like to see higher sales and a forecasted net income of $1,400,000. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization and interest expenses will increase by 10%. The tax rate, which is 25%, will remain the same. (Note that while the tax rate remains constant, the taxes paid will change.) What level of sales would generate $1,400,000 in net income? Round your answer to the nearest dollar, if necessary.

$ ______