Financial Statement Analysis for Inventory Valuation Methods: A company uses the FIFO (First-In-First-Out) inventory valuation method. The company's inventory purchases and sales for the year were as follows:

Beginning inventory: 100 units at $10 per unit

Purchases: 200 units at $12 per unit

Sales: 250 units

Calculate the cost of goods sold and ending inventory using the FIFO method and discuss how this inventory valuation method affects the company's financial statements and tax liabilities.