The accounting records of Wall's China Shop reflected the following balances as of January 1, 2018: Cash Beginning inventory Common stock Retained earnings $19,800 18,900 (210 units @ $90) 15,700 23,000 The following five transactions occurred in 2018: 1. First purchase (cash) 120 units @ $92 2. Second purchase (cash) 195 units @ $100 3. Sales (all cash) 360 units @ $200 4. Paid $14,550 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. 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.) Complete this question by entering your answers in the tabs below. 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 L IFO Weighted Average Sales Cost of goods sold Gross margin Salaries expense Income before tax Income tax expenses Net income 0