Net Income:

Brinkman's General Store had the following transactions during the current year:

Sales generated for the year on credit $500,000 (85% have been collected at year end) Borrowed a short-term loan from the bank 50,000 Interest incurred but not yet paid on the loan 5,000 Bought inventory for resale 40,000 Depreciation expense on building 10,000 Operating expenses 50,000 Cost of inventory sold 375,000 Paid suppliers for inventory 15,000 Accounts payable, ending balance 10,000 Tax rate 40%

Net income reported for the year is ?

(I know the answer is 36000 but not sure how this is calculated. So show the steps please.)