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: (200 @ $94) Cash Beginning inventory Common stock Retained earnings $16,500 18,800 14,400 29,900 The following five transactions occurred In Year 3: 1. First purchase (cash): 115 units @ $96 2. Second purchase (cash): 195 units @ $104 3. Sales (all cash): 345 units @ $189 4. Pald $15,350 cash for salaries expense 5. Pald 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.) Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required B3 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 L IFO Weighted Average Cost of goods sold Ending inventory