Waldorf Co. had the following transactions during the month of October 2014:

* Cash received from bank loans was $60,000.

* Dividends of $18,500 were paid to stockholders in cash.

* Revenues earned and received in cash amounted to $100,500.

* Expenses incurred and paid were $78,000.

What amount of net income will be reported on an income statement for the month of October?

$18,500.

$22,500.

$78,000.

$100,500.