The accounting records of Walls China Shop reflected the following balances as of January 1, Year 3:

Cash	$	17,700
Beginning inventory		20,680		(220 @ $94)
Common stock		14,700
Retained earnings		23,680

The following five transactions occurred in Year 3:

1. First purchase (cash): 125 units @ $96
2. Second purchase (cash): 195 units @ $104
3. Sales (all cash): 375 units @ $200
4. Paid $16,100 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 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.)

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	LIFO	Weighted Average
Cash flows from operating activities
Net cash flows from operating activities	0	0	0
Cash flows from investing activities
Cash flows from financing activities
Net change in cash	0	0	0
Ending cash balance	$0	$0	$0