The following information was drawn from the 2016 accounting records of Cozart Merchandisers.
1. Inventory with a list price of $40,000 was purchased under terms 2/10, net/30.
2. Cozart returned $4,200 of the inventory to the supplier five days after purchase.
3. The accounts payable was settled within the discount period.
4. The inventory was sold for $69,000.
5. Selling and administrative expenses amounted to $12,000.
6. Interest expense paid amounted to $800.
7. Land that cost $15,000 was sold for $20,000 cash.
a. Determine the cost of the inventory sold.
b. Prepare a multistep income statement.
c. Where would the interest expense be shown on the statement of cash flows?
d. How would the sale of the land be shown on the statement of cash flows?
e. Explain the difference between a loss and an expense.