In its statement of cash flows issued for the year ending December 31, Oxford Company reported a net cash inflow from operating activities of $123,000. The following adjustments were included in the supplementary schedule reconciling cash flow from operating activities with net income:

Depreciation $38,000

Increase in net accounts receivable 31,000

Decrease in inventory 27,000

Decrease in accounts payable 48,000

Increase in prepaid expenses 12,000

Net income is: