So I was working on a 1040 a couple weeks back and checked with the client on whether or not he wants to make a SEP contribution.  In the past he has earned $100,000 to $150,000.  This year he is showing a tad north of $200,000 on his schedule C.  When told where he is sitting he says, "that can't be!"  He has no cash, how can he be showing that much income?  It is bewildering and I have to admit that I am completely stumped.  How can we be showing that much income but have no cash?  I'm pretty sure the $200,000 he took out in draws during the year doesn't factor into the equation.  I hope I can figure this out before April 15th 😶