compute net income for the first year for gyro corporation

QUESTION 24 Gyro Corporation had revenues of $400,000 in its first year of operations. The company has not collected on 540,000 of its sales and still owes $50,000 on $140,000 of merchandise it purchased. The company had no inventory on hand at the end of the year The company paid $30,000 in salaries. Owners invested $40,000 in the business and $40,000 was borrowed on a five year note. The company paid $4,000 in interest that was the amount owed for the year, and paid $12,000 for a two year insurance policy on the first day of business (Jan 1, 2018). Gyro has an effective income tax rate of 40% Cammiste net income for the first vear for Gyro Corporation