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Tuy ILLIUS OF Walls China Shop reflected the following balances as of January 1 Year 3 Cash Beginning inventory Common stock Retained earnings $18, 109
Tuy ILLIUS OF Walls China Shop reflected the following balances as of January 1 Year 3 Cash Beginning inventory Common stock Retained earnings $18, 109 19,740 (210 @ $94) 15,689 22,240 The following five transactions occurred in Year 3. 1. First purchase (cash): 120 units @ $96 2. Second purchase (cash): 205 units @ $104 3. Sales (all cash): 360 units @ $194 4. Paid $15,300 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 Year 3 income statement balance sheet, and statement of cash flows under FIFO UFO, 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. 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. Required A Required B1 Required B2 Required B3 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. (Do not round intermediate calculations. Round your answers to nearest whole dollar amount.) FIFO UFO Weighted Average Cost of goods sold Ending inventory Required A Required B1 > Required A Use a vertical model to prepare the Year 3 balance sheet under FIFO, LIFO, and weighted average. intermediate calculations. Round your answers to nearest whole dollar amount. WALL'S CHINA SHOP Balance Sheets As of December 31, Year 3 FIFO LIFO Weighted Average Assets $ 0 $ 0 Total assets Stockholders' equity Total stockholders' equity Dym y your answers in the tabs below. Required A Required B1 Required B2 Required B3 Use a vertical model to prepare the Year 3 income statement under FIFO, UFO, 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, Year 3 FIFO LIFO Weighted Average Salaries expense Income before tax Required A Required B2 > use a ver la mouet cu prepare ne rear sucer RTLES RUWS under F uru, On wyneddvetage LU TIULIO intermediate calculations. Round your answers to nearest whole dollar amount. Amounts to be deducted should be indicat with a minus sign.) WALL'S CHINA SHOP Statements of Cash Flows For the Year Ended December 31, Year FIFO IFO Cash flows from operating activities Weighted Average Net cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Ending cash balance Required B2
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