The accounting records of Carrols Lamp Shop reflected the following balances as of January 1, 2014: Cash $ 18,400 Beginning inventory 18,920 (220 units @ $86) Common stock 15,700 Retained earnings 21,620 The following five transactions occurred in 2014: 1. First purchase (cash) 125 units @ $88 2. Second purchase (cash) 200 units @ $96 3. Sales (all cash) 375 units @ $197 4. Paid $16,250 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.

b-1.

Use a vertical model to prepare the 2014 income statement under FIFO, LIFO, and weighted average.

b-2.

Use a vertical model to prepare the 2014 balance sheet under FIFO, LIFO, and weighted average.

b-3.	Use a vertical model to prepare the 2014 statement of cash flows under FIFO, LIFO, and weighted average.