In its first month of operations, Splish Brothers earned $64300 in service revenue, $3800 of which was on account and still outstanding at year-end, with the balance received in cash. The company incurred operating expenses of $48300. Of these expenses, $1500 was still owed on account at year-end. What amount of net income will Splish Brothers report on its income statement for its first month if it uses cash-basis accounting?

$16000

$12200

$13700

$17500