The accounting records of Walls China Shop reflected the following balances as of January 1, Year 2:

Cash	$	17,100
Beginning inventory		19,135		(215 units @ $89)
Common stock		14,200
Retained earnings		22,035

The following five transactions occurred in Year 2:

First purchase (cash) 120 units @ $91

Second purchase (cash) 200 units @ $99

Sales (all cash) 365 units @ $200

Paid $15,350 cash for salaries expense

Paid cash for income tax at the rate of 25 percent of income before taxes

Required

Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and (3) weighted-average cost flow.

Use a vertical model to show the Year 2 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.

Req 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. (Do not round intermediate calculations. Round your answers to nearest whole dollar amount.)

	FIFO	LIFO	Weighted Average
Cost of goods sold
Ending inventory

Req B1

Use a vertical model to show the Year 2 income statement under FIFO, LIFO, and weighted average. (Do not round intermediate calculations. Round your answers to nearest whole dollar amount.)

WALL'S CHINA SHOP
Income Statements
For the Year Ended December 31, Year 2
	FIFO	LIFO	Weighted Average
Sales
Cost of goods sold
Gross margin
Salaries expense	15,350	15,350
Income before tax	(15,350)	(15,350)	0
Income tax expenses
Net income

Req B2

Use a vertical model to show the Year 2 balance sheet under FIFO, LIFO, and weighted average. (Do not round intermediate calculations. Round your answers to nearest whole dollar amount.)

WALL'S CHINA SHOP
Balance Sheets
As of December 31, Year 2
	FIFO	LIFO	Weighted Average
Assets
Cash
Inventory
Total assets	$0	$0	$0
Stockholders' equity
Common stock
Retained earnings
Total stockholders' equity	$0	$0	$0

Req B3

Use a vertical model to show the Year 2 statement of cash flows under FIFO, LIFO, and weighted average. (Do not round intermediate calculations. Round your answers to nearest whole dollar amount. Cash outflows should be indicated with a minus sign.)

WALL'S CHINA SHOP
Statements of Cash Flows
For the Year Ended December 31, Year 2
	FIFO	LIFO	Weighted Average
Cash flows from operating activities
Cash inflow from customers
Cash outflow for salaries expense
Cash outflow for income tax
Net cash flows from operating activities	0	0	0
Cash flows from investing activities
Cash flows from financing activities
Net change in cash	0	0	0
Plus: Beginning cash balance
Ending cash balance	$0	$0	$0