The Brick Company had cash sales of $222,400 for Year 1, its first year of operation. On April 2, the company purchased 206 units of inventory at $170 per unit. On September 1, an additional 155 units were purchased for $187 per unit. The company had 43 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 Earnings Revenue - Expenses - Balance Sheet Cash Flows Event No. Cash Inventory + + 0 + Net Income | 10 T = 10 1 10 10 10) 10 0 + Jo , J + 10 1 + 10 + 10 1 | = - - -1 Panel 2: LIFO Cost Flow 0 0 10 0 Bal. = 10 | = 10 1 10 | 1 2. + 1 0 + 10 10 - | + + 1 10 1 = 10 | 0 10 0 | | | Bal. - 10 | Required A Required B Required C Required E Compute net income using FIFO. (Round your final answer to the nearest whole dollar amount.) Net income assuming FIFO cost flow Required A Required B Required C Required E Compute net income using LIFO. (Round your final answer to the nearest whole dollar amount.) Net income assuming LIFO cost flow Required A Required B Required C Required E Which method, FIFO or LIFO, produced the larger amount of assets on the balance sheet? Method