The accounting records of Walls China Shop reflected the following balances as of January 1, Year 3: Cash $ 18,000 Beginning inventory 17,835 (205 @ $87) Common stock 14,500 Retained earnings 21,335 The following five transactions occurred in Year 3: First purchase (cash): 125 units @ $89 Second purchase (cash): 195 units @ $97 Sales (all cash): 360 units @ $191 Paid $13,800 cash for salaries expense 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. 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.)