Problem:
The S&H construction Company expects to have a total sales next year totaling $15,000,000. In addition, the firm pays taxes at 35% and will owe $300,000 in interest expense. Based on last year's operations the firm's management predicts that its cost of goods sold will be 60% of the sales and operating expenses will total 30%.
Required:
Question: What is your estimate of the firm's net income (after taxes) for the coming year?
Note: Explain all calculation and formulas.