The Brick Company had cash sales of $225,400 for Year 1, its first year of operation. On April 2, the company purchased 175 units of inventory at $185 per unit. On September 1, an additional 131 units were purchased for $204 per unit. The company had 31 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, 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 preceding paragraph describes five accounting events: (1) a sales transaction, (2) the first purchase of inventory, (3) a second purchase of in cost of goods sold expense, and (5) the payment of income tax expense. Show the amounts of each event in horizontal statements models, assur cost flow. (In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, NC for ne decreases to account balances and cash outflows with a minus sign. Not all cells require input.) THE BRICK COMPANY Effect of Events on Financial Statements Panel 1: FIFO Cost Flow Balance Sheet Event No. Retained Cash + Inventory Revenue Earnings 1. + 2. 3. 4 5 Balance 1. 2. 0 Income Statement. Statement of Cash Flows Expenses Net Income Panel 2: LIFO Cost Flow 01 3. 4. 5. 0 Balance 0 . 0= Complete this question by entering your answers in the tabs below. 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