Actually, the $60 million isn’t counted as “cash” on the balance sheet, it accumulates under the generic asset heading “gross loans,” because the amount of deferred interest is added back to the previous loan balance. However, it does increase the equity account on the other side of the balance sheet. It does not, however, improve operating cash flow. Also, the $60 million is not profit, but rather revenue – two very different things.
However, you’re right in that they are counting chickens before they hatch.
