The following data relates to the Texas Co's annual operation:

Direct Materials Inventory, Beginning

$900

Direct Materials Inventory, Ending

$600

Direct Materials Purchased

$7,000

Direct Labor

$3,000

Factory Overhead

$5,000

Work-in-Process Inventory, Beginning

$1,400

Work-in-Process Inventory, Ending

$1,500

Finished Goods Inventory, Beginning

$4,000

Finished Goods Inventory, Ending

$3,700

Sales Revenue

$25,000

Selling and Administrative Expenses

$6,000

Income Tax Rate

30%

Required) Please answer the following questions and show all your works to get full credits.

a. Prepare the company's Cost of Goods Manufactured Schedule

b. Prepare the company's Income statement

Texas Co. had the following historical pattern for its credit sales:

60% collected in the month of sale

25% collected in the firs month after sale

10% collected in the second month after sale

3% collected in the third month after sale

2% uncollectible