(Income statement) At the end of its third year of operations, the August Manufacturing Co.

1. (Income statement) At the end of its third year of operations, the August Manufacturing Co. had $4,500,000 in revenues; $3,375,000 in cost of goods sold; $450,000 in operating expenses, which included depreciation expense of $150,000; and had a tax liability equal to 35 percent of the firm's taxable income. What is the net income of the firm for the year?