The following information was drawn from the Year 1 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.

Required a. Determine the amount of net sales. (Round your intermediate calculations and final answer to the nearest whole dollar amount.)

b. Prepare a multistep income statement. (Round your intermediate calculations and final answer to the nearest whole dollar amount. Amounts to be deducted and losses should be indicated with a minus sign.)

c. Where would the interest expense be shown on the statement of cash flows? multiple choice 1

• Operating activities

• Investing activities

• Financing activities

d. How would the sale of the land be shown on the statement of cash flows? multiple choice 2

• The full sales price of the land, $9,250, would be shown as a cash inflow from financing activities on the statement of cash flows.

• The full sales price of the land, $9,250, would be shown as a cash inflow from investing activities on the statement of cash flows.

• The full sales price of the land, $9,250, would be shown as a cash inflow from operating activities on the statement of cash flows