The Following Data Relate to Rocket Company for the Year

The following data relate to Rocket Company for the year ended December 31, 2010.Rocket Company uses the cash basis.
Sales on credit
$180,000
Cost of inventory sold on credit
130,000
Collections from customers
170,000
Purchase of inventory on credit
140,000
Payment for purchases
150,000
Selling expenses (accrual basis)
20,000
Payment for selling expenses
25,000
Which of the following amounts represents income for Rocket Company for the year ended December 31, 2010?

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