Using the below information to answer questions 5-10. Below is the balance sheet Funco Supplies Co. as of 31.12.2015:

Balance Sheet as on 31.12.2015 (all figures in $)

Cash and Bank Balance 3,40,000

Accounts Payable 8,00,000

Accounts Receivable 4,00,000

Interest Payable 1,620

Inventory 8,60,000

Accrued expenses 12,000

Prepaid Rent 40,000

Long Term Debt 72,000

Equipment (Net of accumulated Depreciation) 1,00,000

Share Capital 2,14,380

Retained Earnings 6,40,000 1

The following occurred during 2016:

Sales for 2016 was $1,700,000, of which $1,500,000 was credit sales.

The closing balance of receivables was $650,000.

Additions to inventory during the year amounted to $1,000,000.

Closing inventory was $900,000.

The rest of the inventory and additions were sold during the year.

Closing accounts payable was $750,000.

Rent for office premises was $8,000 per month.

5 months of rent was paid in advance.

Other office expenses amounted to $70,000 for the year.

The unpaid (accrued) expenses at the end of the year were $15,000.

The interest rate on long-term debt was 9.0% p.a.

Interest was paid quarterly on the first day of each quarter, i.e. January 1st, April 1st, and so on.

Opening Equipment (i.e., as of 31/12/15) comprised of $125,000 gross amount less accumulated depreciation of $25,000.

Depreciation for the year was $20,000.

Funco purchased equipment worth $187,000 during the year, which was paid for in cash.

This cash came from a capital contribution made by Funco's owner.

The day before closing the books for the year, Funco repaid $50,000 of debt outstanding.

1. what is the net income for 2016