The accounting records of Walls China Shop reflected the following balances as of January 1, Year 2: The following five transactions occurred in Year 2:

Cash	$80,100
Beginning Inventory	$33,000	200 units @ $150
Common Stock	$50,000
Retained Earnings	$63,100

1) First purchase (cash) 150 units @ $155

2) Second purchase (cash) 160 units @ $160

3) Sales (all cash) 410 units @ $320

4) Paid $38,000 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.)