$1$ Problem $5-19$A $($Algo$)$ Effect of different inventory cost flow methods on financial statements LO $5-1$

The accounting records of Wall's China Shop reflected the following balances as of January $1,$ Year $3$:

$8$

points

Cash

Beginning inventory

Common stock

Retained earnings

$\{\begin{array}{cc}\text{:}[\text{\$}17,& 200]\\ 17,& 630\\ 15,& 300\\ 19,& 530\end{array}(205$@$$86)$

The following five transactions occurred in Year $3.$

First purchase $($cash$).120$ units @$$88$

Second purchase $($cash$)$: $205$ units @ $$96$

$3.$Sales $($all cash$)\mathrm{.}355$ units @ $$187$

Paid $$14,400$ cash for salaries expense

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$-1.$ Use a vertical model to show the Year $3$ income statement under FIFO, LIFO, and welghted average. $($Hint Record the events under an accounting equation before preparing the statements$)$

b$-2.$ Use a vertical model to show the Year $3$ balance sheet under FIFO, LIFO, and weighted average. $($Hint$.$ Record the events under an accounting equation before preparing the statements$)$

b$-3.$ Use a vertical model to show the Year $3$ statement of cash flows under FIFO, LIFO, and weighted average $($Hint$.$ Record the events under an accounting equation before preparing the statements$)$

Answer is not complete.