Is cost of goods sold an asset 1 + HW2b Saved Help Save & E The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 3 Cash $16,000 Deginning inventory 17,630 (205 unita $86) Common stock 15,700 17,930 Retained earnings eBook The following five transactions occurred in Year 3: Print 1. First purchase (cash): 125 unitse$88 2. Second purchase (cash): 200 units e $96 Reerences3 Sales (all cash): 360 units $192 4. Paid $14,050 cash for salaries expense 5. Paid cash for income tax at the rate of 25 percent of income before texes Required a. Compute the cost of goods sold and ending inventory, assuming () 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 fiows 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