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:

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.)

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