Alpaca Corporation had revenues of $220,000 in its first year of operations. The company has not...

Alpaca Corporation had revenues of $220,000 in its first year of operations. The company has not collected on $19,100 of its sales and still owes $26,800 on $90,000 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 $23,000 in the business and $23,000 was borrowed on a five-year note. The company paid $3,400 in interest that was the amount owed for the year, and paid $7,300 for a two-year insurance policy on the first day of business. Alpaca has an effective income tax rate of 40%. Compute net income for the first year for Alpaca Corporation. Multiple Choice $130,000 $67,170 $64,980 $111,950

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ekkarill92 answered 2 years ago

Alpaca Corporation had revenues of $315,000 in its first year of operations. The company has not...

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