h. Use a vertical model to show the 2018 income statement, balance sheet, and statement of flows under FIFO. LIFO, and weighted average. (Hint: Record the events under an accounting equation before preparing the statements.) Problem 5-33 Effect of FIFO versus LIFO on income tax expense The Brick Company had cash sales of $280,000 for 2018, its first year of operation. On April 2 company purchased 210 units of inventory at $390 per unit. On September 1, an additional 160 uni LO 5-6 were purchased for $425 company's income tax rate is 40 percent. All transactions are cash transactions Required a. The preceding paragraph describes five accounting events: (1) a sales transaction, (2 per unit. The company had 110 units on hand at the end of the year ) the first pur chase of inventory, (3) a second purchase of inventory, (4) the recognition of cost of goods sold expense, and (5) the payment of income tax expense. Record the amounts of each event in horizon. tal statements models like the following ones, assuming first a FIFO and then a LIFO cost flow Effect of Events on Financial Statements Panel 1: FIFO Cost Flow nt Statement of Cash Flows Balance Sheet Income Statement Cash InventoryRet. Earn. Rev. Exp. Net Inc. Panel 2: LIFO Cost Flow Statement of Cash Flows Balance Sheet Incame Statenent InventoryRet. Earn. Rev. Net Inc