Reference no: EM133053201

Question - Alpaca Corporation had revenues of $260,000 in its first year of operations. The company has not collected on $18,700 of its sales and still owes $25,200 on $85,000 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $11,000 in salaries. Owners invested $21,000 in the business and $21,000 was borrowed on a five-year note. The company paid $2,800 in interest that was the amount owed for the year, and paid $7,600 for a two-year insurance policy on the first day of business. Alpaca has an effective Income tax rate of 30%. Compute net income for the first year for Alpaca Corporation.