The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 3: Cash Beginning inventory Common stock Retained earnings $17,400 18,860 (205 $92) 15,000 21,260 The following five transactions occurred in Year 3: 1. First purchase (cash): 115 units @ $94 2. Second purchase (cash): 200 units @ $102 3. Sales (all cash): 350 units a $195 4. Paid $16,150 cash for salaries expense 5. Pald 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.) Complete this question by entering your answers in the tabs below. Required A Required B1 Required 82 Required B3 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. (Do not round intermediate calculations. Round your answers to nearest whole dollar amount.) FIFO LIFO Weighted Averago Cost of goods sold Ending inventory Required 01 9 2. Second purchase (cash): 200 units a $102 3. Sales (all cash): 350 units @ $195 4. Paid $16,150 cash for salaries expense 5. Paid cash for income tax at the rate of 25 percent of income before taxes 11.11 points Required a. Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, ar 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 weighted average. (Hint Record the events under an accounting equation before preparing the statement eBook Print Complete this question by entering your answers in the tabs below. References Required A Required B1 Required B2 Required 33 Use a vertical model to prepare the Year 3 income statement under FIFO, LIFO, and weighted average. (Do not Intermediate calculations. Round your answers to nearest whole dollar amount.) WALL'S CHINA SHOP Income Statements For the Year Ended December 31, Year 3 FIFO Weighted Average LIFO Salaries expense Income before tax Required a. Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow. (2) LIFO 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 weighted average. (Hint: Record the events under an accounting equation before preparing the stat Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required B3 Use a vertical model to prepare the Year 3 balance sheet under FIFO, LIFO, and weighted average. (Do intermediate calculations. Round your answers to nearest whole dollar amount.) WALL'S CHINA SHOP Balance Sheets As of December 31, Year 3 FIFO LIFO Weighted Average Assets Total assets Stockholders' equity Total stockholders' equity