The information below is taken from the December 31, 2014 adjusted trial balance of Rummer Company (all numbers are pre-tax):

Freight-in	$7,500
General and administrative expenses	50,000
Interest expense	15,000
Inventory, 1/1/14	140,000
Inventory, 12/31/14	165,000
Loss on sale of a major component of the business	15,000
Purchases	330,000
Purchases returns	5,000
Sales	700,000
Sales discounts taken	10,000
Selling expenses	25,000

The income tax rate is 30%. There were 25,000 shares of common stock outstanding throughout the year.

Required:

a. Prepare a schedule of the cost of goods sold.

b. Prepare a 2014 income statement for Rummer Company, using a single-step format (disregard earnings per share).