The following information was drawn from the 2016 accounting records of Ozark Merchandisers:
1. Inventory that had cost $21,200 was sold for $39,900 under terms 2/20, net/30.
2. Customers returned merchandise to Ozark five days after the purchase. The merchandise had been sold for a price of $1,520. The merchandise had cost Ozark $920.
3. All customers paid their accounts within the discount period.
4. Selling and administrative expenses amounted to $4,200.
5. Interest expense paid amounted to $360.
6. Land that had cost $8,000 was sold for $9,250 cash.
a. Determine the amount of net sales.
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 gain and revenue.