1. Problem statement. The company has Sales revenue of 120000, Cost of goods sold of 70000, Operating expenses of 20000, Depreciation of 5000, Interest expense of 2000, and a tax rate of 30%. We will compute Net Income following standard financial accounting steps. 2. Formula and rules. Use the following formulas. $EBIT = Revenue - COGS - \text{Operating expenses} - Depreciation$ $EBT = EBIT - \text{Interest expense}$ $Taxes = \text{Tax rate} \times EBT$ for positive EBT. $\text{Net Income} = EBT - Taxes$ Note that taxes apply only if EBT is positive. 3. Compute EBIT. $$EBIT = 120000 - 70000 - 20000 - 5000$$ $$EBIT = 25000$$ 4. Compute EBT. $$EBT = EBIT - 2000$$ $$EBT = 25000 - 2000 = 23000$$ 5. Compute Taxes. $$Taxes = 0.30 \times 23000$$ $$Taxes = 6900$$ 6. Compute Net Income. $$\text{Net Income} = 23000 - 6900$$ $$\text{Net Income} = 16100$$ 7. Final answer. The Net Income for the period is $16100$.