Compute net income using FIFO. (Round your final answer to the nearest whole dollar amount.) THE BRICK COMPANY Effect of Events on Financial Statements Panel 1: FIFO Cost Flow \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multirow[b]{2}{*}{ Event No. } & \multicolumn{5}{|c|}{ Balance Sheet } & \multicolumn{5}{|c|}{ Income Statement } & \multirow[b]{2}{*}{ Statement of Cash Flows } \\ \hline & Cash & + & Inventory & = & RetainedEarnings & Revenue & - & Expenses & = & Net Income & \\ \hline 1. & & + & & = & & & - & & = & & \\ \hline 2. & & + & & = & & & - & & = & & 5 \\ \hline 3. & & + & & = & & & - & & = & & 1 \\ \hline 4. & & + & & = & & & - & & = & & 7 \\ \hline 5. & & + & & = & & & - & & = & & \\ \hline Balance & & + & & = & & & - & & = & & \\ \hline \multicolumn{12}{|c|}{ Panel 2: LIFO Cost Flow } \\ \hline 1. & & + & & = & & & - & & = & & P \\ \hline 2. & & + & & = & & & - & & = & & \\ \hline 3. & & + & & = & & & - & & = & & 7 \\ \hline 4. & & + & & = & & & - & & = & & \\ \hline 5. & & + & & = & & & - & & = & & 7 \\ \hline Balance & & + & & = & & & - & & = & & 7 \\ \hline \end{tabular} Exercise 5-7A (Algo) Effect of FIFO Versus LIFO on income tax expense LO 5-1 The Brick Company had cash sales of $226,200 for Year 1 , its first year of operation. On April 2, the company purchased 238 units of inventory at $170 per unit. On September 1, an additional 179 units were purchased for $187 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? Which method, FIFO or LIFO, produced the larger amount of assets on the balance sheet? Compute net income using LIFO. (Round your final answer to the nearest whole dollar amount.)