The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 3: 4 Cash Beginning inventory Common stock Retained earnings $18,700 18,060 (210 e $86) 15,100 21,660 es The following five transactions occurred in Year 3: 1. First purchase (cash): 125 units @ $88 2. Second purchase (cash): 200 units o $96 3. Sales (all cash): 365 units $194 4. Paid $13,500 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. 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.) Complete this question by entering your answers in the tabs below. Required A Required 1 Required B2 Required 33 Use a vertical model to prepare the Year 3 income statement under FIFO, LIFO, and weighted average. (Do not round Intermediate calculations. Round your answers to nearest whole dollar amount.) WALLS CHINA SHOP Prey 1 of 2 Next > 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. 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.) Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required 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. Compute the income tax expense for each method. (Do not round intermediate calculations. Round your answers to nearest whole dollar amount.) FIFO LIFO Weighted Average Cost of goods sold Ending inventory Required A Required B1 > 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. 10:42 Required A Required B1 Required B2 Required B3 Use a vertical model to prepare the Year 3 income statement under FIFO, LIFO, and weighted average. (Do not round intermediate calculations. Round your answers to nearest whole dollar amount.) ences WALL'S CHINA SHOP Encome Statements For the Year Ended December 31, Year 3 FIFO LIFO Weighted Average Sales Cost of goods sold Gross margin Salarios expense Income before tax income tax expenses Net Income 0 0 0 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. Required A Required B1 Required B2 Required B3 Use a vertical model to prepare the Year 3 balance sheet under FIFO, LIFO, and weighted average. (Do not round Intermediate calculations. Round your answers to nearest whole dollar amount.) WALL'S CHINA SHOP Balance Sheets As of December 31, Year 3 FIFO LIFO Weighted Average Assets Cash Inventory $ 0 $ 0 $ 0 Total assets Stockholders' equity Common stock Retained earnings Total stockholders' equity $ 0 $ 0$ 0 Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required B3 Use a vertical model to prepare the Year 3 statement of cash flows under FIFO, LIFO, and weighted average. (Do not round intermediate calculations. Round your answers to nearest whole dollar amount. Amounts to be deducted should be indicated with a minus sign.) WALL'S CHINA SHOP Statements of Cash Flows For the Year Ended December 31, Year 3 FIFO Weighted LIFO Average Cash flows from operating activities Cash inflow from customers Cash outflow for inventory Cash outflow for salaries expense Cash outflow for income tax 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 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. 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.) Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required 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. Compute the income tax expense for each method. (Do not round intermediate calculations. Round your answers to nearest whole dollar amount.) FIFO LIFO Weighted Average Cost of goods sold Ending inventory Required A Required B1 > 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. 10:42 Required A Required B1 Required B2 Required B3 Use a vertical model to prepare the Year 3 income statement under FIFO, LIFO, and weighted average. (Do not round intermediate calculations. Round your answers to nearest whole dollar amount.) ences WALL'S CHINA SHOP Encome Statements For the Year Ended December 31, Year 3 FIFO LIFO Weighted Average Sales Cost of goods sold Gross margin Salarios expense Income before tax income tax expenses Net Income 0 0 0 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. Required A Required B1 Required B2 Required B3 Use a vertical model to prepare the Year 3 balance sheet under FIFO, LIFO, and weighted average. (Do not round Intermediate calculations. Round your answers to nearest whole dollar amount.) WALL'S CHINA SHOP Balance Sheets As of December 31, Year 3 FIFO LIFO Weighted Average Assets Cash Inventory $ 0 $ 0 $ 0 Total assets Stockholders' equity Common stock Retained earnings Total stockholders' equity $ 0 $ 0$ 0 Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required B3 Use a vertical model to prepare the Year 3 statement of cash flows under FIFO, LIFO, and weighted average. (Do not round intermediate calculations. Round your answers to nearest whole dollar amount. Amounts to be deducted should be indicated with a minus sign.) WALL'S CHINA SHOP Statements of Cash Flows For the Year Ended December 31, Year 3 FIFO Weighted LIFO Average Cash flows from operating activities Cash inflow from customers Cash outflow for inventory Cash outflow for salaries expense Cash outflow for income tax 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