The S&H Construction Company expects to have total sales next year totaling

$14,700,000.

In addition, the firm pays taxes at

35

percent and will owe

$307,000

in interest expense. Based on last year's operations the firm's management predicts that its cost of goods sold will be

63

percent of sales and operating expenses will total

29

percent. What is your estimate of the firm's net income (after taxes) for the coming year?