Cash Beginning inventory Common stock Retained earnings $19,500 19,135 (215 @ $89) 14,200 24,435 The following five transactions occurred in Year 3: 1. First purchase (cash): 115 units @ $91 2. Second purchase (cash): 205 units @ $99 3. Sales (all cash): 360 units @ $198 4. Paid $13,350 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 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. Required A Required B1 Required B2 Required B3 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. (Do not round intermediate calculations. Round your answers to nearest whole dollar amount.) FIFO L IFO Weighted Average Traet of nondo cold r Required A Required B1 Required B2 Required B3 Use a vertical model to prepare the Year 3 income statement under FIFO, LIFO, and weighted average. (Do not round intermediate calculations. Round your answers to nearest whole dollar amount.) WALL'S CHINA SHOP Income Statements For the Year Ended December 31, Year 3 FIFO L IFO Weighted Average Salaries expense Income before tax Required A Required B1 Required B2 Required B3 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 Balance Sheets As of December 31, Year 3 FIFO L IFO Weighted Average Assets Total assets Stockholders' equity Total stockholders' equity