When Sandra Michaels's father took seriously it 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 know 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 os long as the Cash account increased. Thus, she was delighted to watch the cash balance increase from $26.752 at the beginning of the first month to $119,275 at the end of the second month an increase of $92523 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 $71157 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 ther understand the difference $260,400 ASAP COURTERS Inco Statenent Months of June and July, 20x1 Operating Revenues Delivery Fees Operating Expenses Salaries and Related Taxes $136,14 Gasoline and 011 25,420 Repairs Expense 3,00 Supplies Expenses 2,691 Insurance pe 3058 Depreciation Expense 14.536 Total Operating Expense Net Tnce 199,243 571,157 In addition, Sandra permits you to examine the accounting records, which show that the balance of Salaries Payable was $2.044 at the beginning of the first month but had increased to $5.878 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 decreased $255 during the two months and all supplies had been purchased before Sandra took over the balances of the conv's other set and liability accounts showed no changes