ABC, Inc. had revenue of $500,000 in its first year of operations. ABC has not charged $50,000 of its sales and still owes $75,000 of the $90,000 of its merchandise inventory. ABC has no inventory available at the end of the year. The company paid $25,000 in wages.

The owners invested $30,000 in the business and the company borrowed $40,000 from the bank at 10% payable annually for 5 years. ABC paid for this year's interest on December 30. In addition, on January 1 of this year, he paid $4,000 for a two-year insurance policy.

ABC has a tax rate of 40%.

Prepare a Statement of Results for the first year of ABC operations.