Problem 5-32 Efect of different inventory cost flow methods on financial The accounting records of Wall's China Shop reflected the following balances as of January 1, 2018 LO 5-6 statements CHECK FIGURES a. Cost of Goods Sold FIFO $62,650 b. Net Income LIFO: $22,012 Cash $80,100 Beginning inventory Common stock 33,000 1220 units $150 50,000 Retained earnings 63,100 The following five transactions occurred in 2018 I. First purchase (cash) 150 units@ $155 2. Second purchase (cash) 160 units@ $160 3. Sales (all cash) 4. Paid $38,000 cash for salaries expense 5. Paid cash for income tax at the rate of 25 percent of income before taxes 410 units @ $320 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 2018 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.)