Innisfil Ice Hunt Rentals Inc. reported a net cash flow from operating activities of $40,625 on its cash flow statement for the year ended December 31, 2020. The following information was reported in the Cash Flows from Operating Activities section of the cash flow statement, which uses the indirect method:

Decrease in legal fees payable ........................ $1,000
Increase in prepaid expenses ............................... 400
Amortization ......................................................... 3,350
Loss on sale of equipment ................................. 1,500
Increase in accounts payable ............................... 600
Decrease in inventory ......................................... 2,175
Increase in trade accounts receivable ............... 2,000

Required

Determine the net income reported by Innisfil Ice Hunt Rentals Inc. for the year ended December 31, 2020. Hint: complete the operating section of the cash flow statement and then solve for net income.