The accounting records of Walls China Shop reflected the following balances as of January 1, Year 3:

Cash	$	19,800
Beginning inventory		18,450		(205 @ $90)
Common stock		14,400
Retained earnings		23,850

The following five transactions occurred in Year 3:

1. First purchase (cash): 115 units @ $92
2. Second purchase (cash): 205 units @ $100
3. Sales (all cash): 350 units @ $195
4. Paid $16,750 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. Compute the income tax expense for each method.

b-1. Use a vertical model to show the Year 3 income statement under FIFO, LIFO, and weighted average. (Hint: Record the events under an accounting equation before preparing the statements.)

b-2. Use a vertical model to show the Year 3 balance sheet under FIFO, LIFO, and weighted average. (Hint: Record the events under an accounting equation before preparing the statements.)

b-3. Use a vertical model to show the Year 3 statement of cash flows under FIFO, LIFO, and weighted average. (Hint: Record the events under an accounting equation before preparing the statements.)