Training Services, Inc. (TSI) guarantees the quality of its instructional services. TSI earned $40,000 of cash revenue from instructional services in 2017. The company estimates that future warranty claims will be 6 percent of revenue. During 2017, TSI paid $700 cash on warranty claims. Based on this information, the amount of net income and the net change in cash for 2017 would be a) $37,600 / $37,600 Ob) $37,600 / $39,300. c) $39,300 / 39,300 d) $38,300/$39,300