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se a vertical model to show the Year 2 income statement under FIFO, LIFO, and weighted average. (Do not roun termediate calculations. Round your answers to nearest whole dollar amount.) The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2: The following five transactions occurred in Year 2: 1. First purchase (cash) 115 units @ \$91 2. Second purchase (cash) 195 units @ \$99 3. Sales (all cash) 365 units @ \$187 4. Paid $15,800 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) weightedaverage cost flow. b. 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.) Complete this question by entering your answers in the tabs below. Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and (3) weightedaverage cost flow. (Do not round intermediate calculations. Round your answers to nearest whole dollar amount.) \begin{tabular}{|l|l|l|l|} \hline \multicolumn{4}{|c|}{ WALL'S CHINA SHOP } \\ \hline \multicolumn{2}{|c|}{ For the Year Ended December 31, Year 2 } \\ \hline & FIFO & LIFO & \begin{tabular}{c} Weighted \\ Average \end{tabular} \\ \hline Cash flows from operating activities & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline Net cash flows from operating activities & & & \\ \hline Cash flows from investing activities & & & \\ \hline Cash flows from financing activities & & & \\ \hline Net change in cash & & & \\ \hline & & & \\ \hline Ending cash balance & $ & & \\ \hline \end{tabular}

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