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When Sandra Michaels's father took seriously ill suddenly, Sandra had just completed the semester in college, so she stepped in to run the family business, ASAP Couriers, until it could be sold. Under her father's direction, the company was a successful operation and provided ample money to meet the family's needs. Sandra was majoring in biology in college and knew little about business or accounting, but she was eager to do a good job of running the business so it would command a good selling price. Since all of the services performed were paid in cash, Sandra figured that she would do all right as long as the Cash account increased. Thus, she was delighted to watch the cash balance increase from $24,800 at the beginning of the first month to $109,011 at the end of the second month-an increase of $84,211 during the two months she had been in charge. When she was presented an income statement for the two months by the company's bookkeeper, she could not understand why it did not show that amount as income but instead reported only $61,586 as net income. Knowing that you are taking an accounting class, Sandra brings the income statement, shown below, to you and asks if you can help her understand the difference. ASAP COURIERS Income Statement Months of June and July, 20x1 Operating Revenues Delivery Fees $ 259, 200 Operating Expenses Salaries and Related Taxes $139, 125 Gasoline and Oil 29, 561 Repairs Expense 6, 861 Supplies Expense 2, 779 Insurance Expense 3,046 Depreciation Expense 16, 242 Total Operating Expense 197, 614 Net Income $ 61, 586 In addition, Sandra permits you to examine the accounting records, which show that the balance of Salaries Payable was $2,761 at the beginning of the first month but had increased to $6,110 at the end of the second month. Most of the balance in the Insurance Expense account reflects monthly insurance payments covering only one month each. However, the Prepaid Insurance account had