Probtem 5-32 Effect of different inventory cost flow methods on financial statements L0 5-6 The accounting records of Wall's China Shop reflected the follow- ing balances as of January 1, 2018: The following five transactions occurred in 2018: First purchase (cash) 150 units @$ 155 Second purchase {cash} 160 units @$ 160 Sales (all cash) 410 units @$ 320 Paid$ 38,000 cash for salaries expense Paid cash for income tax at the rate of 25 percent of income before taxes 5-"?ow Required - Compute the cost of goods sold and ending inventory, as- suming (1} FIFO cost flow, (2} LIFO cost flow, and (3] weighted-average cost tlovv. Compute the income tax ex- pense for each method. - 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.)