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

Cash	$	16,400
Beginning inventory		17,600		(200 units @ $88)
Common stock		15,900
Retained earnings		18,100

The following five transactions occurred in Year 2:

1. First purchase (cash) 115 units @ $90
2. Second purchase (cash) 195 units @ $98
3. Sales (all cash) 345 units @ $199
4. Paid $14,800 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.)

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

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
Income before tax	0	0	0
Income tax expenses
Net income

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

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 outflow for income tax
Cash outflow for inventory
Cash inflow from customers
Cash outflow for salaries expense
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