Griffin's Goat Farm, Inc., has sales of $671,000, costs of $333,000, depreciation expense of $77,000, interest expense of $48,500, and a tax rate of 24 percent.

What is the net income for this firm?

The net income is $161,500.

Step-by-step explanation:

"Net income is the amount after all expenses have been deducted from sales."

Here, the sales is $671,000.

From the given information, the expenses can be known. The expenses included are:

costs = $333,000 Depreciation expense = $77,000 Interest expense = $48,500

Therefore, the total expense is the sum of all the expenses that are given.

Total expense = costs + Depreciation expense + Interest expense

⇒ 333,000 + 77,000 + 48,500

⇒ 458,500

The total expenses is $458,500.

The amount after deducting the expenses from the sales:

⇒ 671,000 - 458,500

⇒ 212,500

Earnings before tax is $212,500

Now, the tax amount is calculated for the amount after deducting the expenses from the sales.

The tax rate is 24 %.

Therefore, 24% of 212,500 is the tax amount that must be deducted from the earnings before taxes.

⇒ (24/100) * 212,500

⇒ 51,000

The tax amount is $51,000.

To find the net income:

Net income = Earnings before taxes - Tax amount

⇒ 212,500 - 51,000

⇒ 161,500

The net income is $161,500.