Response to the following problem:
Working Backward: Dividends on the Statement of Cash Flows
Stanton Corp. began operations on January 1, 2014. 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 Stanton's net income for its first year of operations.