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Before month-end adjustments are made, the February 28 trial balance of Sparrow Enterprise Ltd. contains revenue of $11,000 and expenses of $6,400 excluding income tax. Adjustments are necessary for the following items:

Amortization for February is $1,150.

Revenue earned but not yet billed is $3,175.

Accrued interest expense is $600.

Revenue collected in advance that is now earned is $2,500.

Portion of prepaid insurance expired during February is $425.

Assume a 10% tax rate.

Required: Calculate the correct net earnings for Sparrow's statement of earnings for February.