Week 2: Pluto Home Finders - What's Net Income? At To get you thinking about the topics we are discussing this week, read the situation below and post your answer to this discusion. You don't need to explain your answer The Situation: Pluto Home Finders, Inc. (PHF), a dog placement service, operates in the Midwestern United States. During 2015 the compamy eamed $145,000 in revenue by providing services to customers. However, it collected only $120,000 of the revenue in cash. PHF expects to collect the remaining $25,000 in 2016 . In addition, PHF incurred $80,000 of expenses. However, by the end of 2015 . PHF had paid only $75,000 of the cash owed for expenses because it had not yet paid $5,000 to employees who had worked during 2015 but had not been paid by the end of the year. PHF expect to pay the $5,000 in cash to the employees during 2016 Based on this information alone, what amount of net income should PHF report on its 2015 financial statements? [Hint: Do you remember that net income equals revenues minus expenses?]