The accounting records of Wall's China Shop reflected the following balances as of January 1, 2018: Cash Beginning inventory Common stock Retained earnings $18,800 19,360 (220 units @ $88) 14,500 23,660 The following five transactions occurred in 2018: 1. First purchase (cash) 120 units @ $90 2. Second purchase (cash) 195 units @ $98 3. Sales (all cash) 370 units @ $190 4. Paid $14,600 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. Compute the income tax expense for each method. b. Use a vertical model to show the 2018 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. Reg A Req B1 Req B2 Reg B3 Use a vertical model to prepare the 2018 income statement under FIFO, LIFO, and weighted average. (Do not round intermediate calculations. Round your answers to nearest whole dollar amount.) Complete this question by entering your answers in the tabs below. Req A Req B1 Reg 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. Compute the income tax expense for each method. (Do not round intermediate calculations. Round your answers to nearest whole dollar amount.) FIFO LIFO Cost of goods sold Ending inventory $ $ 33,100 16,170 $ $ 34,750 14,520 Weighted Average $ 34,074 $ 15,195 Complete this question by entering your answers in the tabs below. Reg A Req B1 Req B2 Reg B3 Use a vertical model to prepare the 2018 income statement under FIFO, LIFO, and weighted average. (Do not round intermediate calculations. Round your answers to nearest whole dollar amount.) WALL'S CHINA SHOP Income Statements For the Year Ended December 31, 2018 FIFO L IFO Weighted Average Sales Cost of goods sold Gross margin Salaries expense Income before tax Income tax expenses Net income Use a vertical model to prepare the 2018 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, 2018 FIFO LIFO Weighted Average Assets Cash Inventory 0 $ $ $ 0 0 $ $ Total assets Stockholders' equity Common stock Retained earnings Total stockholders' equity $ 0 $ 0 $ 0 Use a vertical model to prepare the 2018 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.) Weighted Average WALL'S CHINA SHOP Statements of Cash Flows For the Year Ended December 31, 2018 FIFO L IFO Cash flows from operating activities Cash inflow from customers Cash outflow for income tax Cash outflow for inventory Cash outflow for salaries expense 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