The accounting records of Walls China Shop reflected the following balances as of January 1, Year 2: Cash $ 19,400 Beginning inventory 20,680 (220 units @ $94) Common stock 14,200 Retained earnings 25,880 The following five transactions occurred in Year 2: First purchase (cash) 115 units @ $96 Second purchase (cash) 195 units @ $104 Sales (all cash) 365 units @ $189 Paid $14,250 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.)

The following five transactions occurred in Year 2:

1. First purchase (cash) 115 units @ $96
2. Second purchase (cash) 195 units @ $104
3. Sales (all cash) 365 units @ $189
4. Paid $14,250 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.)

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3. 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
   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
   Ending cash balance	$0	$0	$

   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.)