Craft Corp. began operations on January 1, 2015. The statement of cash flows for the first year reported dividends paid of $160,000. The balance sheet at the end of the first year reported $40,000 in dividends payable and $580,000 in ending retained earnings. Determine Craft's net income for its first year of operations.

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The Answer of Craft Corp. began operations on January 1, 2015. The statement of cash flows for the first year reported dividends paid of $160,000. The balance sheet at the end of the first year reported $40,000 in dividends payable and $580,000 in ending retained earnings. Determine Craft's net income for its first year of operations.