I only do not understand how to get letter K. If someone could please explain to me how to answer letter K with work it would be very much appreciated!

P14-6B below The comparative statements of Lauer Company are presented Compute numerous ratios (LO 2) LAUER COMPANY Income Statement For the Year Ended December 31 2016 $520,000 2017 Net sales (all on account) $650,000 Expenses 415,000 150,800 354,000 114,800 Cost of goods sold Selling and administrative Interest expense Income tax expense 7,200 6,000 18,000 591,000 59.000 14,000 488,800 31,200 Total expenses Net income