Assume that you are the owner of The Collegiate Shop, which specializes in items that interest stu- dents. At the end of January 2003, you find (for January only) this information:

a. Sales, per the cash register tapes, of $120,000, plus one sale on credit (a special situation) of $1,000.

b. With the help of a friend (who majored in accounting), you determined that all of the goods sold during January had cost $40,000 to purchase.

c. During the month, according to the checkbook, you paid S38.0O0 for salaries, rent, supplies, advertising, and other expenses; however, you have not yet paid the S600 monthly utilities for January on the store and fixtures.
Required:
On the basis of the data given, what was the amount of income for January (disregard income taxes)?
Show computations.