7. The following data relate to The Income Calculation Company for the year ended December 31, 2018. Income Calculation Company uses the accrual basis.

Sales for cash	$210,000
Sales for credit	220,000
Cost of inventory sold	200,000
Collections from customers	300,000
Purchases of inventory on credit	190,000
Cash payment for purchases	180,000
Selling expenses (accrual basis)	75,000
Cash payment for selling expenses	60,000

Which of the following represents income for the Company for the year ended December 31, 2018?

1. $235,000
2. $185,000
3. $190,000
4. $155,000
5. None of the above