Alpaca Corporation had revenues of $200,000 in its first year of operations. The company has not collected on $19,600 of its sales and still owes $25,300 on $80,000 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $13,500 in salaries. Owners invested $15,000 in the business and $15,000 was borrowed on a five-year note. The company paid $3,600 in interest that was the amount owed for the year, and paid $5,300 for a two-year insurance policy on the first day of business. Alpaca has an effective income tax rate of 40%. Compute net income for the first year for Alpaca Corporation. Step by Step