Net Income may also be called earnings or profit by different groups. It is the accounting measure of income minus expenses. Since there may be several non-cash expenses, it is not a measure of cash flow.\ \ Meric Mining Inc. recently reported $15,000 of sales, $7,500 of operating costs other than depreciation, and $1,200 of depreciation. The company had no amortization charges, it had outstanding $6,500 of bonds that carry a 6.25% interest rate, and its federal-plus-state income tax rate was 25%. How much was the firm's net income after taxes? Meric uses the same depreciation expense for tax and stockholder reporting purposes.\ \ The interest expense is not given directly. You calculate the annual expense by multiplying the amount of outstanding bonds * the interest rate.\