CSN Corporation had revenues of $280,000 in its first year of operations. The company has not collected $19,600 of its sales and still owes $27,000 on $90,000 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $14,500 in salaries. Owners invested $14,000 in the business and $14,000 was borrowed on a five-year note. The company paid $2,800 in interest that was the amount owed for the year and paid $5,000 for a two-year insurance policy on the first day of business. CSN has an effective income tax rate of 40%.

Compute the net income for the first year