Alpaca Corporation had revenues of $230,000 in its first year of operations. The company has not collected on $18,400 of its sales and still owes $25,100 on $70,000 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $11,000 in salaries. Owners invested $27,000 in the business and $27,000 was borrowed on a five-year note. The company paid $3,000 in interest that was the amount owed for the year, and paid $5,900 for a two-year insurance policy on the first day of business. Alpaca has an effective income tax rate of 30%. Compute net income for the first year for Alpaca Corporation. Multiple Choice $143,050 $109,070 $160,000 $100,135

Alpaca Corporation had revenues of $230,000 in its first year of operations. The company has not collected on $18,400 of its sales and still owes $25,100 on $70,000 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $11,000 in salaries. Owners invested $27,000 in the business and $27,000 was borrowed on a five-year note. The company paid $3,000 in interest that was the amount owed for the year, and paid $5,900 for a two-year insurance policy on the first day of business. Alpaca has an effective income tax rate of 30%. Compute net income for the first year for Alpaca Corporation. Multiple Choice $143,050 $109,070 $109,070 $160,000 $100,135