The accounting records of Walls China Shop reflected the following balances as of January 1, Year 3:

Cash	$	18,300
Beginning inventory		18,860		(205 @ $92)
Common stock		15,900
Retained earnings		21,260

The following five transactions occurred in Year 3:

1. First purchase (cash): 120 units @ $94
2. Second purchase (cash): 195 units @ $102
3. Sales (all cash): 355 units @ $188
4. Paid $14,300 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.)