for question M2-21 Penno Corporation recorded service revenues of $200,000 in 2013, of which $170,000 were oncreditand $30,000 were for cash. Moreover, of the $170,000 credit sales for 2013, Pennocollected $20,000 cash on those receivables before year-end 2013. The company also paid$25,000 cash for 2013 wages. its employees also earned another $15,000 in wages for 2013,which were not yet paid at year-end 2013.

In the income statement, why have they considered the revenue to be independent of cash assets?