The Following Data Relate to Rocket Company for the Year

Multiple Choice

The following data relate to Rocket Company for the year ended December 31, 2012.Rocket Company uses the cash basis. $$\begin{array} { l r } \text { Sales on credit } & \$ 180,000 \\\text { Cost of inventory sold on credit } & 130,000 \\\text { Collections from customers } & 170,000 \\\text { Purchase of inventory on credit } & 140,000 \\\text { Payment for purchases } & 150,000 \\\text { Selling expenses (accrual basis) } & 20,000 \\\text { Payment for selling expenses } & 25,000\end{array}$$ Which of the following amounts represents income for Rocket Company for the year ended December 31, 2012?

A) $30,000
B) $5,000 loss
C) $40,000
D) $45,000
E) $50,000