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The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2: Cash Beginning inventory Common stock Retained earnings $19,200
The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2: Cash Beginning inventory Common stock Retained earnings $19,200 18,450 (205 units $90) 14,600 23,050 The following five transactions occurred in Year 2: 1. First purchase (cash) 120 units a $92 2. Second purchase (cash) 195 units @ $100 3. Sales (all cash) 355 units @ $188 4. Paid $16,050 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, b. 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.) Complete this question by entering your answers in the tabs below. Complete this questio Req A Reg 61 Req B2 Req B3 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 Weighted LIFO Average Cost of goods sold Ending inventory Req B1 > Req A Req B1 Reg B2 Reg B3 Use a vertical model to show the Year 2 income statement under FIFO, L intermediate calculations. Round your answers to nearest whole dollar ar WALL'S CHINA SHOP Income Statements For the Year Ended December 31, Year 2 +FO LIFO Weighted Average Salaries expense Income before tax Use a vertical model to show the Year 2 statement of cash flows under FIFO, LIFO, and weighte intermediate calculations. Round your answers to nearest whole dollar amount. Cash outflows s 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 Net cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Ending cash balance
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