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To calculate the **Net Income**, we can use the following formula:

\[
\text{Net Income} = (\text{Sales} - \text{Total Expenses}) \times (1 - \text{Income Tax Rate})
\]

We are given the following information:

- **Sales**: $563,485
- **Cost of Goods Sold (COGS)**: $200,000
- **Selling and Administrative Expenses**: $60,000
- **Depreciation Expense**: $85,000
- **Interest Expense**: $40,000
- **Income Tax Rate**: 0.3 (30%)

### Step 1: Calculate the total expenses
\[
\text{Total Expenses} = \text{COGS} + \text{Selling and Admin Expenses} + \text{Depreciation Expense} + \text{Interest Expense}
\]
\[
= 200,000 + 60,000 + 85,000 + 40,000 = 385,000
\]

### Step 2: Subtract total expenses from sales to get pre-tax income
\[
\text{Pre-Tax Income} = \text{Sales} - \text{Total Expenses}
\]
\[
= 563,485 - 385,000 = 178,485
\]

### Step 3: Calculate tax expense
\[
\text{Tax Expense} = \text{Pre-Tax Income} \times \text{Income Tax Rate}
\]
\[
= 178,485 \times 0.3 = 53,545.5
\]

### Step 4: Calculate net income
\[
\text{Net Income} = \text{Pre-Tax Income} - \text{Tax Expense}
\]
\[
= 178,485 - 53,546 = 124,939 \ (\text{rounded})
\]

### Final Answer:
The **Net Income** is **$124,939**.

Do you need further details or have any questions?

Here are 5 related questions to explore further:
1. What is the significance of the depreciation expense in net income calculation?
2. How does the interest expense affect pre-tax income?
3. How would a change in the income tax rate impact net income?
4. What other expenses could be considered in calculating net income?
5. Why is it important to separate COGS from other operating expenses?

**Tip:** Always double-check tax rates and expense categories when preparing financial statements for accuracy.

Calculate Net Income based on the provided financial data (Sales, Expenses, and Tax Rate).

Learn how to calculate net income using financial data like Sales ($563,485), Expenses ($385,000), and a 30% tax rate, resulting in a final net income of $124,939.

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