Income and Cash Flow Analysis

The Berndt Corporation expects to have sales of $$13$ million. Costs other than depreciation are expected to be $80\%$ of sales, and depreciation is expected to be $$1\mathrm{.}3$ million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. Brendt's federal$-$plus$-$state tax rate is $35\%.$ Berndt has no debt.

Set up an income statement. What is Berndt's expected net income? Enter your answer in dollars. For example, an answer of $$1\mathrm{.}2$ million should be entered as $1,200,000.$

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What is Berndt's expected net cash flow? Enter your answer in dollars. For example, an answer of $$1\mathrm{.}2$ million should be entered as $1,200,000.$