Alpaca, S.A., had revenues of $ 200,000 in its first year of operations. At the end of the year, customers were left to owe $ 20,000 from sales and Alpaca owed $ 25,000 to its suppliers of the $ 70,000 it purchased of merchandise. Inventory in stock at the end of the year was $ 0. Alpaca paid $ 15,000 in salaries during the first year, corresponding to the salary of the employees for that period. The shareholders invested $ 20,000 in the business and the Company received a credit of $ 20,000 over 5 years. The company paid $ 2,000 of interest that was equal to the amount of interest earned for the year. $ 6,000 was also contracted and paid for insurance that covers two years from the first day of company operations. The tax rate is 40%. This information will be used for the next two questions.

The ending cash balance at the end of the first year is:

The net income for the first year is: