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The owner of a business reviews the income statement prepared by you and asks, Why do you report a profit of only $30 000 when

The owner of a business reviews the income statement prepared by you and asks, "Why do you report a profit of only $30 000 when cash collections of $100 000 were received and cash payments for the period totaled only $50 000 for expenses?" How would you respond to the owner's question?

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