The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2: Cash Beginning inventory Common stock Retained earnings $16,200 13,200 (150 units @ $88) 14,400 15,000 The following five transactions occurred in Year 2: 1. First purchase (cash) 120 units @ $90 2. Second purchase (cash) 200 units @ $98 3. Sales (all cash) 425 units @ $187 4. Paid $14,150 cash for salaries expenses. 5. Paid cash for income tax at the rate of 40 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 (income tax expense is 40% of operating net income before tax.) For the weighted average calculations: unit prices should be rounded to three decimal places, e.g. if the unit price is $10.1234, you should use $10.123. The total cost of goods sold and ending inventory should be stated in whole dollars. b. (this part has been omitted) c. Use a vertical model (see Exhibit 2.2, p. 78 for illustration) to show the Year 2 income statement, balance sheet, and statement of cash flows under FIFO, LIFO, and weighted average. Required A Required C 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. (Round intermediate calculations to 3 decimal plac Round your final answers to the nearest whole dollar amount.) IFO IFO feighted Average Cost of Goods Sold Ending Inventory WALL'S CHINA SHOP Computation of Income Tax Expense and Net Income FIFO LIFO Weighted Average Required A Required C > WALL'S CHINA SHOP Income Statements FIFO LIFO Weighted Average WALLS CHINA QUOD Assets Total assets Stockholders' equity Total stockholders' equity WALL'S CHINA SHOP Balance Sheets As of December 31, Year 2 FIFO Weighted LIFO Average WALL'S CHINA SHOP Statements of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities Net cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Ending cash balance FIFO Weighted LIFO Average