Computation of Net Income For the following four cases, compute net income (or net loss). Caution: Not all of the items listed should be included in the computation of net income.

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Case A Case B Case C Case D Cost of goods sold $ 60,000 $ 30,000 $60,000 $110,000 Interest expense 18,000 47,000 25,000 31,000 Cash 3,000 4,500 2,100 6,000 Retained earnings 50,000 15,000 31,000 70,000 Sales 100,000 150,000 70,000 200,000 Accounts payable 12,000 20,000 5,000 38,000 Rent revenue 5,000 1,000 12,000 10,000 Machinery 175,000 60,000 50,000 185,000