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 $17,500 18,270 (210 $87) 14,000 21,770 The following five transactions occurred in Year 3: 1. First purchase (cash): 125 units @ $89 2. Second purchase (cash): 195 units a $97 3. Sales (all cash): 365 units $199 4. Paid $16,650 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 (0) 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 on accounting equation before preparing the statements.) points question by entering your answers in the tabs below. eBook Required A Required B1 Required B2 Required B3 References Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and average cost flow. Compute the income tax expense for each method. (Do not round intermediate calculatic answers to nearest whole dollar amount.) FIFO LIFO Weighted Average Cost of goods sold Ending inventory Required 31 > Homework 5.20 Surved 4 Required A Required B1 Required B2 Required B3 6 points Use a vertical model to prepare the Year 3 income statement under FIFO, LIFO, and weighted average. (Do not rou intermediate calculations. Round your answers to nearest whole dollar amount.) WALLIS CHINA SHOP Income Statements For the Year Ended December 31, Year 3 FIFO LIFO Weighted Average eBook References Salaries expense Income before tax 0 0 4 Use a vertical model to prepare the rear 3 balance sheet under FIFO, LIFO, and weighted average. (Do intermediate calculations. Round your answers to nearest whole dollar amount.) 6 points WALL'S CHINA SHOP Balance Sheets As of December 31, Year 3 eBook FIFO LIFO Weighted Average Assets References 0 $ 0 $ 0 Total assets Stockholders' equity Total stockholders' equity $ o $ 0 $ 4 with a minus sign.) WALL'S CHINA SHOP Statements of Cash Flows 6 points For the Year Ended December 31, Year 3 FIFO LIFO Weighted Average Cash flows from operating activities eBook References 0 Net cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash 0 0 0 $ 0 0 $ $ Ending cash balance 0