Pluto Home finder (PHF), a dog placement service, operates in the US. During 2015 the company earned $145,000 in revenue by providing services. However, it only collected $120,000 in revenue of cash. PHF expects to collect remaining $25,000 in 2016.

PHF also, incurred $80,000 in expenses. However, by the end of 2015, PHF had paid $75,000 of the cash owned for expenses because it has not yet paid for $5,000 to the workers who had worked for the year 2015. PHF expects to pay the $5,000 in cash to the workers in 2016.

Based on the information above, what amount of net income should PHF report in 2015 financial statements.

Answer rating: 100% (QA)

Net income to be reported accordi... View the full answer