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

Cash	$	18,200
Beginning inventory		19,565		(215 units @ $91)
Common stock		14,400
Retained earnings		23,365

The following five transactions occurred in Year 2:

1. First purchase (cash) 120 units @ $93
2. Second purchase (cash) 205 units @ $101
3. Sales (all cash) 365 units @ $198
4. Paid $16,400 cash for salaries expense
5. Paid cash for income tax at the rate of 25 percent of income before taxes

Required

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

The accounting records of Wall's China Shop reflected the following balances as of January 1 , Year 2 : The following five transactions occurred in Year 2: 1. First purchase (cash) 120 units @ $93 2. Second purchase (cash) 205 units @ $101 3. Sales (all cash) 365 units @ $198 4. Paid $16,400 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. b. 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. 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.) Complete this question by entering your answers in the tabs below. 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.) Complete this question by entering your answers in the tabs below. 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.) Complete this question by entering your answers in the tabs below. 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.)