The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2: The following five transactions occurred in Year 2: 1. First purchase (cash) 115 units @$90 2. Second purchase (cash) 205 units $98 3. Sales (all cash) 360 units 9$198 4. Paid $13,550 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.) \begin{tabular}{|l|l|l|l|} \hline & FIFO & LIFO & WeightedAverage \\ \hline Cost of goods sold & & & \\ \hline Ending inventory & & & \\ \hline \end{tabular} WALL'S CHINA SHOP Income Statements For the Year Ended December 31, Year 2 \begin{tabular}{|l|l|l|l|} \hline & \multicolumn{1}{c|}{ FIFO } & LIFO & WeightedAverage \\ \hline Sales & & & \\ \hline Cost of goods sold & & & \\ \hline Gross margin & & & \\ \hline Salaries expense & & & \\ \hline Income before tax & & & \\ \hline Income tax expenses & & & \\ \hline Net income & & & \\ \hline \end{tabular} WALL'S CHINA SHOP Balance Sheets As of December 31, Year 2 WALL'S CHINA SHOP Statements of Cash Flows For the Year Ended December 31, Year 2