Sherlock Homes, a manufacturer of low cost mobile housing, has $5,350,000 in assets.

Temporary current assets $2,700,000

Permanent current assets 1,585,000

Capital assets 1,065,000

Total assets $5,350,000

Short-term rates are 11 percent. Long-term rates are 16 percent. (Note that longterm rates imply a return to any equity). Earnings before interest and taxes are $1,130,000. The tax rate is 30 percent.

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

Earnings after taxes ___________$