In its first month of operations, Skats Gym earned $34,000 in service revenue, $3,000 of which was on account and still outstanding at year-end. The remaining $31,000 was received in cash from customers. The company incurred operating expenses of $25,000. Of these expenses, $23,000 was paid in cash, and $2,000 was still owed on account at year-end. What amount of net income will Skats report on its income statement for its first month if it uses accrual-basis accounting?