a Screen Shot 2021-02-05 at 1.45.15 PM Screen Shot 2021-02-05 at 1.44.38 PM Q Search @ + Search The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 3: Beginning inventory Common stock Retained earnings $19,400 18,205 205 # $99) 14,000 23,645 Required a. Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and (3) weighted average cost flow. Compute the income tax expense for each method. b. Use a vertical model to show the Year 3 income statement, balance sheet, and statement of cash flows under FIFO, LIFO, and weighted average. (Hint: Record the events under an accounting equation before preparing the statements.) Complete this question by entering your answers in the tabs below. The following five transactions occurred in Year 3: 1. First purchase (cash): 120 units $91 2. Second purchase (cash): 205 units @ $99 3. Sales (all cash): 355 units @ $185 4. Paid $16,450 cash for salaries expense 5. Paid cash for income tax at the rate of 25 percent of income before taxes Required A Required 11 Required B2 Required B3 Search Use a vertical model to prepare the Year 3 balance sheet under FIFO, LIFO, and weighted average. (Do not round intermediate calculations. Round your answers to nearest whole dollar amount.) WALL'S CHINA SHOP Statements of Cash Flows For the Year Ended December 31, Year 3 FIFO LIFO WALLIS CHINA SHOP Balance Sheets As of December 31, Year 3 FIFO Weighted Average LIFO Weighted Average Assets Cash Cash flows from operating activities Cash inflow from customers Cash outflow for inventory Cash outflow for salaries expense Cash outflow for income tax Inventory S $ 0 $ ols D 0 0 0 Total assets Stockholders' equity Common stock Retained earnings Net cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Plus: Beginning cash balance Ending cash balance 0 01 0 Total stockholders' equity $ 0 $ OS S D S D $ 0 $ O 0