The Brick Company had cash sales of $220,700 for Year 1, its first year of operation On April 2, the company purchased 153 units of Inventory at $155 per unit. On September 1, an additional 115 units were purchased for $171 per unit. The company had 62 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 Cash Flows Income Statement Balance Sheet Event No. Revenue - Expenses Net Income Cash + Inventory 220,700 + Retained Earnings 220,700 1 227 000 227,000 2 3 + + + + + 227 000 COA NA NA 227,000 INC 4. 5 Bal 220,700 + 0 = 0 = 227,000 220,700 227,000 - Panel 2: LIFO Cost Flow ( 1. 2 OA ++++ OA NA NA 4 5. Bal 0 0 0 OINC Required A Required B > 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 am Net income assuming FIFO cost flow (Me Graw HA