answer this question for me.

2. The Compaq Corporation has $500,000 of debt outstanding, and it pays an annual interest rate of 10%. Compaq's annual sales are $2 million, average tax rate is 30%, and its net profit after-tax is $1,00,000. If the company does not maintain a minimum operating income level of $250,000, its bank will refuse to renew the loan and bankruptcy will result. Calculate Compaq Corporation's current operating income and comment on its eligibility of this loan renewal. [5 Marks]