I tried solving Req A and Req B1 (Some of the answers are wrong)

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

The accounting records of Walls China Shop reflected the following balances as of January 1, Year 3:

Cash	$	19,900
Beginning inventory		18,270		(210 @ $87)
Common stock		14,300
Retained earnings		23,870

The following five transactions occurred in Year 3:

1. First purchase (cash): 120 units @ $89
2. Second purchase (cash): 195 units @ $97
3. Sales (all cash): 360 units @ $199
4. Paid $15,050 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-1. Use a vertical model to show the Year 3 income statement under FIFO, LIFO, and weighted 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.)

Requirement 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. (Do not round intermediate calculations. Round your answers to nearest whole dollar amount.)

	FIFO	LIFO	Weighted Average
Cost of goods sold	$31,860	$33,510	$18,547
Ending inventory	$16,005	$14,355	$17,310

Requirement B1:

Use a vertical model to show the Year 3 income statement under FIFO, LIFO, and weighted average. (Hint: Record the events under an accounting equation before preparing the statements.) (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
Sales	$71,640	$71,640	$71,640
Cost of goods sold	(31,860)	(33,510)	(32,685)
Gross margin	39,780	38,130	38,955
Salaries expense	(15,050)	(15,050)	(15,050)
Income before tax	24,730	23,080	23,905
Income tax expenses	(6,182)	(5,770)	(5,976)
Net income	$18,548	$17,310	$17,929

Requirement B2:

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.) (Do not round 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
Total assets	$0	$0	$0
Stockholders' equity
Total stockholders' equity	$0	$0	$0

Requirement B3:

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.) (Do not round intermediate calculations. Round your answers to nearest whole dollar amount. Cash outflows should be indicated by a minus sign.)

WALL'S CHINA SHOP
Statements of Cash Flows
For the Year Ended December 31, Year 3
	FIFO	LIFO	Weighted Average
Cash flows from operating activities
Net cash flows from operating activities	0	0	0
Cash flows from investing activities
Cash flows from financing activities
Net change in cash	0	0	0
Ending cash balance	$0	$0	$0