The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2.

Cash	$ 19,100
Beginning inventory	13,200	(150 units @ $88)
Common stock	14,300
Retained earnings	18,000

The following five transactions occurred in Year 2:

1. First purchase (cash): 115 units @ $90
2. Second purchase (cash): 200 units @ $98
3. Sales (all cash): 415 units @ $197
4. Paid $13,350 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. b. Record the above transactions in general journal form and post to T-accounts assuming each of the cost flows listed. Assume perpetual inventory system is used. 1. FIFO 2. LIFO 3. Weighted Average c. Use a vertical model to show the Year 2 income statement, balance sheet, and statement of cash flows under FIFO, LIFO, and weighted average.

Use a vertical model to show the Year 2 income statement, balance sheet, and statement of cash flows under FIFO, LIFO, and weighted average. (Round intermediate calculations to 3 decimal places. Round your final answers to the nearest whole dollar amount. Amounts to be deducted and losses should be indicated with a minus sign.) WALL'S CHINA SHOP Income Statements For Year Ended December 31, Year 2 FIFO LIFO Weighted Average WALL'S CHINA SHOP Balance Sheets As of December 31, Year 2 FIFO LIFO Weighted Average Assets Total assets Stockholders' equity Total stockholders' equity WALL'S CHINA SHOP Statements of Cash Flows For the Year Ended December 31, Year 2 FIFO LIFO Cash flows from operating activities: Weighted Average Net cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Ending cash balance