The Brick Company had cash sales of $220,400 for Year 1, its first year of operation. On April 2, the company purchased 166 units of Inventory at $195 per unit. On September 1, an additional 125 units were purchased for $215 per unit . The company had 55 units on hand at the end of the year. The company's income tax rate is 40 percent. All transactions are cash transactions. Required a. The preceding paragraph describes five accounting events: (1) a sales transaction, (2) the first purchase of inventory (3) a second purchase of inventory. (4) the recognition of cost of goods sold expense, and (5) the payment of income tax expense. Show the amounts of each event in horizontal statements models like the following ones, assuming first a FIFO and then a LIFO cost flow. b. Compute net income using FIFO. c. Compute net income using LIFO. e. Which method, FIFO or LIFO, produced the larger amount of assets on the balance sheet? THE BRICK COMPANY Effect of Events on Financial Statements Panel 1: FIFO Cost Flow Income Statement Retained Revenue Expenses Earnings Balance Sheet Event No. Cash + Inventory Statement of Cash Flows Net Income + 1. 2 3 N ++ 4 5 Bal Panel 2. LIFO Cost Flow 1 2 3 4 5 Bal