Problem
In 2022, Ajay Ghale, Inc. (a retail clothing company located in the country of Kyrat, near the Himalaya Mountains) sold 1,248,000 units of its product at an average price of $20.00 per unit. Because the owner, Mr. Ghale, does not have the time needed to focus on collections, the company estimated a large allowance for bad debt in 2022 of 5.0 percent of gross revenue.
Ajay Ghale, Inc. began 2022 with 262,000 units in inventory, all carried at a cost of $8.00 per unit. The company purchased 1,347,000 units during 2022 at a cost of $8.00 per unit. And Ajay Ghale, Inc. ended 2022 with 321,000 units in inventory, all carried at a cost of $8.00 per unit.
Operating expenses (excluding depreciation) for Ajay Ghale, Inc. in 2022 were $7,215,000 and depreciation expense was $1,000,000. Ajay Ghale, Inc. had $40,000,000 in debt outstanding throughout all of 2022. This debt carried an average interest rate of 6.0 percent. Ajay Ghale, Inc. had "other income" in 2022 of $2,500,000 (no one knows for sure the exact source of this other income, but the company's accountants suggest that it be included on the company's income statement). Finally, Kyrat's dictator, Pagan Min, taxes all corporations in Kyrat at a rate of 60 percent of earnings before taxes (i.e., EBT). Ajay Ghale, Inc.'s fiscal year runs from January 1 through December 31. Given this information, compute net income for Ajay Ghale, Inc. for 2022.
Using this information, create an income statement for Ajay Ghale, Inc. for 2022.
What is "Net income" for Ajay Ghale, Inc. for 2022?