The accounting records of Walls China Shop reflected the following balances as of January 1, Year 2: Cash $ 18,700 Beginning inventory 19,350 (215 units @ $90) Common stock 14,300 Retained earnings 23,750 The following five transactions occurred in Year 2: First purchase (cash) 120 units @ $92 Second purchase (cash) 200 units @ $100 Sales (all cash) 365 units @ $192 Paid $14,750 cash for salaries expense Paid cash for income tax at the rate of 25 percent of income before taxes

1. Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and (3) weighted-average cost flow.
2. 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.)