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?