Answer:Net income = $ 172,050
Net income:
Working notes for the above answer is as under
We have been given in the sum that,
cashway lumber has sales of $ 620, 000
depreciation of $ 86,800,
COGS 347200,
Interest expanses 43400
Tax rate of 25%.
Now ne t income calculates as follow
Net Income=
Gross profit minus operating expenses and taxes.
Gross profit =620,000 -347200
operating expenses=43400
taxes.25%
| Particular | Amount in $ |
| Sales | 620,000 |
| Less: | |
| COGS | 347,200 |
| Gross Income | 272,800 |
| Less: | |
| Operating Expanses | |
| Interest Expanses | 43400 |
| Income Before Tax | 229,400 |
| Less: | |
| Tax @ 25% | 57350 |
| Net Income | 172,050 |
