Problem:
ABC Corp began operations on Jan 1, 2008. During 2008, the company made sales of $200,000, of which $15,000 remained outstanding in accounts receivable at the end of the year. The company incurred and paid $105,000 of various operating expenses during the year, and also prepaid its $1,000 Jan 2009 rent in December 2008. Additionally, the company made the following adjusting journal entries at year end:
Accrued salaries payable of $5,000
Recorded department expense of $12,000
Accrued interest payable of $500
What is ABC Corp's cash net income?