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begin{tabular}{|l|c|c|c|} hline multicolumn{3}{|c|}{ WALL'S CHINA SHOP } hline & Income Statements hline & FIFO & LIFO & WeightedAverage hline & & &
\begin{tabular}{|l|c|c|c|} \hline \multicolumn{3}{|c|}{ WALL'S CHINA SHOP } \\ \hline & Income Statements \\ \hline & FIFO & LIFO & WeightedAverage \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline Salaries expense & & & \\ \hline Income before tax & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} WALL'S CHINA SHOP Balance Sheets As of December 31, Year 2 \begin{tabular}{|c|c|c|c|c|c|} \hline & \multicolumn{2}{|c|}{ FIFO } & \multicolumn{2}{|c|}{ LIFO } & WeightedAverage \\ \hline \multicolumn{6}{|l|}{ Assets } \\ \hline & & & & & \\ \hline & & & & & \\ \hline Total assets & $ & 0 & $ & 0 & S \\ \hline \multicolumn{6}{|l|}{ Stockholders' equity } \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline Total stockholders' equity & $ & 0 & $ & 0 & $ \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ WALL'S CHINA SHOP } \\ \hline \multicolumn{4}{|c|}{ Statements of Cash Flows } \\ \hline \multicolumn{4}{|c|}{ For the Year Ended December 31, Year 2} \\ \hline & FIFO & LIFO & WeightedAverage \\ \hline \multicolumn{4}{|l|}{ Cash flows from operating activities } \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline Net cash flows from operating activities & 0 & 0 & 0 \\ \hline Cash flows from investing activities & & & \\ \hline Cash flows from financing activities & & & \\ \hline Net change in cash & 0 & 0 & 0 \\ \hline+2 & & & \\ \hline Ending cash balance & $ & $ & $ \\ \hline \end{tabular} The following five transactions occurred in Year 2: 1. First purchase (cash) 120 units @ $88 2. Second purchase (cash) 200 units @ \$96 3. Sales (all cash) 365 units @ $193 4. Paid $13,000 cash for salaries expense. 5. Paid cash for income tax at the rate of 25 percent of income before taxes. Required a. Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and (3) weighted-average cos; flow. b. Use a vertical model to show the Year 2 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. Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and (3) weightedaverage cost flow. Note: Do not round intermediate calculations. Round your answers to nearest whole dollar amount
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