The annual sales forSalco, Inc. were$4.62million last year. Thefirm's end-of-year balance sheet was asfollows:

Data Table X Current assets $491, 000 Liabilities $986, 500 5} Net fixed assets 1, 482, 000 Owners' equity 986, 500 Total Assets $ 1, 973, 000 Total $ 1, 973, 000 Print DoneData Table X Sales $ 4 , 620, 000|}} Less : Cost of goods sold ( 3, 509 , 000 ) Gross profit $1, 1 1 1, 000 Less : Operating expenses ( 50 1, 000 ) Net operating income $610, 000 Less : Interest expense ( 92, 000 ) Earnings before taxes $5 18, 000 Less : Taxes ( 35% ) ( 181 , 300 ) Net income $336, 700 Print Done