The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 3: Cash Beginning inventory Common stock Retained earnings $19,400 18,200 (200 @ $91) 15,200 22,400 The following five transactions occurred in Year 3: 1. First purchase (cash): 120 units @ $93 2. Second purchase (cash): 205 units @ $101 3. Sales (all cash): 350 units @ $196 4. Paid $16,900 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 LIFO Weighted Average Cost of goods sold Ending inventory WALL'S CHINA SHOP Income Statements For the Year Ended December 31, Year 3 FIFO LIFO Weighted Average Sales Cost of goods sold Gross margin Salaries expense 0 0 Income before tax Income tax expenses Net income WALL'S CHINA SHOP Balance Sheets As of December 31, Year 3 FIFO LIFO Weighted Average Assets Cash Inventory $ 0 $ 0 $ 0 Total assets Stockholders' equity Common stock Retained earnings Total stockholders' equity $ 0 $ 0 $ WALL'S CHINA SHOP Statements of Cash Flows For the Year Ended December 31, Year 3 FIFO LIFO Weighted Average Cash flows from operating activities Cash inflow from customers Cash outflow for inventory Cash outflow for salaries expense Cash outflow for income tax 0 0 0 0 0 0 0 0 0 Net cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Plus: Beginning cash balance Ending cash balance 0 0 0 $ 0 $ $ 0