Alpaca corporation had revenues of $300,000 in its first year of operations. the company has not collected on $20,000 of its sales and still owes $25,200 on $75,000 of merchandise it purchased. the company had no inventory on hand at the end of the year. the company paid $14,000 in salaries. owners invested $23,000 in the business and $23,000 was borrowed on a five-year note. the company paid $3,000 in interest that was the amount owed for the year, and paid $6,800 for a two-year insurance policy on the first day of business. alpaca has an effective income tax rate of 9%.
compute net income for the first year for alpaca corporation:
a) $ 183,092
b) $ 186,186
c) $ 225,000
d) $ 204,600