Problem 5-19A 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: Cash Beginning inventory Common stock Retained earnings $150) $80, 100 33,000 (220 50,000 63,100 The following five transactions occurred in Year 3: 1. First purchase (cash): 150 units @ $155 2. Second purchase (cash): 160 units $160 3. Sales (all cash): 410 units $320 4. Paid $38,000 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, LIFO, and weighted average. (Hint: Record the events under an accounting equation before preparing the statements.) FIFO L IFO Weighted Average Cost of goods sold Ending inventory Required Required B1 > Complete this question by entering 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, LIFO, 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 Salarios expense Income before tax Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required B3 Use a vertical model to prepare the Year 3 balance sheet under FIFO, LIFO, and weighted average. (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 L IFO Weighted Average Assets Total assets Stockholders' equity Total stockholders' equity Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required B3 Use a vertical model to prepare the Year 3 statement of cash flows under FIFO, LIFO, and weighted average. (Do not round intermediate calculations. Round your answers to nearest whole dollar amount. Amounts to be deducted should be indicated with 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 Cash flows from investing activities Cash flows from financing activities Net change in cash Ending cash balance Required B2 Required as