The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2 Cash Deginning inventory Common stock Retained earnings $16,400 20,460 (220 unita 593) 14,700 22,160 The following five transactions occurred in Year 2: 1. First purchase (cash) 125 units a $95 2. Second purchase (cash) 195 units a $103 3. Sales (all cash) 375 units @ $187 4. Paid $16,650 cash for salaries expense 5. Pald 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.)