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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 $
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 $ 18,600 18,920 (220 units @ $86) 14,300 23, 220 The following five transactions occurred in Year 2: 1. First purchase (cash) 115 units @ $88 2. Second purchase (cash) 205 units @ $96 3. Sales (all cash) 365 units @ $193 4. Paid $14,850 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.) Answer is not complete. Complete this question by entering your answers in the tabs below. Req A Req B1 Reg B2 Reg B3 Use a vertical model to show the Year 2 balance sheet under FIFO, LIFO, and weig 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 $ 16,800 $ 15,050 $ 15,789 Inventory Cash Total assets $ 16,800 $ 15,050 $ 15,789 Stockholders' equity Common stock Retained earnings $ 14,300 $ 14,300 $ 14,300 Total stockholders' equity $ 14,300 $ 14,300 $ 14,300 Reg A Req B1 Req B2 Req B3 Use a vertical model to show the Year 2 statement of cash flows under FIFO, LIFC intermediate calculations. Round your answers to nearest whole dollar amount. C 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 inflow from customers Cash outflow for salaries expense Cash outflow for income tax 0 0 0 0 0 Net cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Plus: Beginning cash balance Ending cash balance 0 0 0 $ 0 $ 0 $ 0
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