The following information was drawn from the 2011 accounting records of Brislin Merchandisers.

1. Inventory with a list price of \(\$ 30,000\) was purchased under terms \(2 / 10\), net \(/ 30\).

2. Brislin returned \(\$ 2,500\) of the inventory to the supplier.

3. The accounts payable was settled within the discount period.

4. The inventory was sold for \(\$ 43,000\).

5. Selling and administrative expenses amounted to \(\$ 8,000\).

6. Interest expense amounted to \(\$ 1,000\).

7. Land that cost \(\$ 12,000\) was sold for \(\$ 10,000\) cash.

Required

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.