1. **State the problem:** Calculate the firm's net income given sales, income tax, operating expenses, cost of goods sold, and interest expense. 2. **Identify given values:** - Sales (Revenue) = 50250000 - Operating Expenses = 8750000 - Cost of Goods Sold (COGS) = 35025000 - Interest Expense = 750000 - Income Tax = 1744000 3. **Calculate Earnings Before Interest and Taxes (EBIT):** $$\text{EBIT} = \text{Sales} - \text{COGS} - \text{Operating Expenses}$$ $$= 50250000 - 35025000 - 8750000 = 6465000$$ 4. **Calculate Earnings Before Tax (EBT):** $$\text{EBT} = \text{EBIT} - \text{Interest Expense}$$ $$= 6465000 - 750000 = 5715000$$ 5. **Calculate Net Income:** $$\text{Net Income} = \text{EBT} - \text{Income Tax}$$ $$= 5715000 - 1744000 = 3971000$$ 6. **Conclusion:** The firm's net income is $3971000$.