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