Alpaca Corporation had revenues of $280,000 in its first year of operations. The company has not collected on $18,100 of its sales and still owes $25,400 on $90,000 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $14,000 in salaries. Owners invested $25,000 in the business and $25,000 was borrowed on a five-year note. The company paid $3,700 in interest that was the amount owed for the year, and paid $6,300 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.

		$101,490
		$169,150
		$190,000
		$113,600

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Alpaca Corporation had revenues of $315,000 in its first year of operations. The company has not collected on $20,200 of its sales and still owes $28,300 on $97,500 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $14,000 in salaries. Owners invested $20,500 in the business and $20,500 was borrowed on a five-year note. The company paid $4,900 in interest that was the amount owed for the year, and paid $8,900 for a two-year insurance policy on the first day of business. Alpaca has an effective income tax rate of 40%. (Assume taxes are paid in the same year).

Compute the cash balance at the end of the first year for Alpaca Corporation.

		$161,140
		$195,502
		$227,502
		$206,502