Problem $5-32$A $($Algo$)$ Effect of different inventory cost flow methods on financial statements LO $5-6$

The accounting records of Wall$$s China Shop reflected the following balances as of January $1,$ Year $2$:

Cash$$19,700$Beginning inventory$20,210(215$ units @ $$94)$Common stock$14,100$Retained earnings

$25,810$

$$

The following five transactions occurred in Year $2$:

First purchase $($cash$)115$ units @ $$96$

Second purchase $($cash$)200$ units @ $$104$

Sales $($all cash$)360$ units @ $$191$

Paid $$15,600$ cash for salaries expense.

Paid cash for income tax at the rate of $25$ percent of income before taxes.

Required

Compute the cost of goods sold and ending inventory, assuming

$(1)$ FIFO cost flow$(2)$ LIFO cost flow and$(3)$ weighted$-$average cost flow

Use a vertical model to show the Year $2$ income statement, balance sheet, and statement of cash flows under FIFO, LIFO, and weighted average. $($Hint: Record the events under an accounting equation before preparing the statements.$)$