Alpaca Corporation had revenues of $290,000 in its first year of operations. The company has not collectedon $19,100 of its sales and still owes $25,300 on $100,000 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 $10,000 in the business and $10,000 was borrowed on a five-year note. The company paid $3,600 in interest that was the amount owed for the year, and paid $7,600 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.

Multiple Choice

• $171,600
• $190,000
• $100,680
• $102,960