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. $\begin{array}{llcc} \text {Sales on credit } &\$180,000 \\ \text {Cost of inventory sold on credit } &130,000\\ \text { Collections from customers } &1700,000\\ \text { Purchase of inventory on credit } &140,000\\ \text { Payment for purchases } &150,000\\ \text { Selling expenses (accrual basis) } &20,000\\ \text { Payment for selling expenses } &25,0000\end{array}$
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