Alpaca Corporation had revenues of $230,000 in its first year of operations. The company has not collected on $19,700 of its sales and still owes $25,800 on $95,000 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $10,500 in salaries. Owners invested $13,000 in the business and $13,000 was borrowed on a five-year note. The company paid $4,800 in interest that was the amount owed for the year, and paid $7,600 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

$ 81,130

$ 88,970

$ 135,000

$ 115,900