1. **State the problem:** We need to find the firm's net income given the sales, income tax, operating expenses, cost of goods sold (COGS), and interest expense. 2. **Recall the net income formula:** $$ \text{Net Income} = \text{Sales} - \text{COGS} - \text{Operating Expenses} - \text{Interest Expense} - \text{Income Tax} $$ 3. **Plug in the values:** $$ \text{Net Income} = 50,250,000 - 35,025,000 - 8,750,000 - 750,000 - 1,744,000 $$ 4. **Calculate step-by-step:** $$ 50,250,000 - 35,025,000 = 15,225,000 $$ $$ 15,225,000 - 8,750,000 = 6,475,000 $$ $$ 6,475,000 - 750,000 = 5,725,000 $$ $$ 5,725,000 - 1,744,000 = 3,981,000 $$ 5. **Final answer:** The firm's net income is **3,981,000**.