The Forecast and Budget Department of XYZ Corporation (involved in the retail trade business) has developed the following selected financial information for the year 2021:

• Gross receipts 25,800,000
• Cost of goods sold 21,300,000
• Dividends received (less than 20%-owned) 250,000
• Interest Income 150,000
• Interest Expense 1,550,000
• Depreciation 575,000
• Other Operating Expenses 1,500,000

XYX is planning a major expansion project for the year 2022 and is in the process securing the needed financing. Financing approval is dependent upon the company averaging Net Income of at least $950,000 for the last three years. Net income for 2019 and 2020 was $875,000 and $925,000 respectively. Your boss the Vice President of Financial Operations has asked you to use the numbers above and calculate Net Income for 2021 to see if it meets or exceeds the target of $950,000.

You are not required to use form 1120, but I have included to give you an idea on how to format your solution. The use of a excel work sheet maybe useful.