Problem $6-12($Algo$)$ Matching asset mix and financing plans $[$LO$6-3]$

Colter Steel has $$5,750,000$ in assets.

Temporary current assets $ $3,500,000$

Permanent current assets $1,625,000$

Fixed assets $625,000$

Total assets $ $5,750,000$

Short$-$term rates are $7$ percent. Long$-$term rates are $12$ percent. Earnings before interest and taxes are $$1,210,000.$ The tax rate is $20$ percent.

If long$-$term financing is perfectly matched $($synchronized$)$ with long$-$term asset needs, and the same is true of short$-$term financing, what will earnings after taxes be$?$