The accounting records of Wall's China Shop reflected the following balances as of January 1, 2018: Cash Beginning inventory Common stock Retained earnings $19,400 18,655 (205 units @ $91) 15,000 23,055 The following five transactions occurred in 2018: 1. First purchase (cash) 115 units @ $93 2. Second purchase (cash) 200 units @ $101 3. Sales (all cash) 350 units @ $185 4. Paid $16,750 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.) Req A Req B1 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. 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 Req A Req B1 Req B2 Req 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 LIFO Weighted Average Salaries expense Income before tax 0 0 0 Req A Req B1 Req B2 Req B3 Use a vertical model to prepare the 2018 balance sheet under FIFO, L 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 Total assets $ 0 $ 0 $ 0 Stockholders' equity Total stockholders' equity $ 0 $ 0 $ 0 Req A Req B1 Req B2 Req B3 Use a vertical model to prepare the 2018 statement of cash flows under F intermediate calculations. Round your answers to nearest whole dollar am with a minus sign.) WALL'S CHINA SHOP Statements of Cash Flows For the Year Ended December 31, 2018 FIFO LIFO Weighted Average Cash flows from operating activities 0 0 0 Net cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash 0 0 0 Ending cash balance 0 $ 0 0