The accounting records of Wall’s China Shop reflected thefollowing balances as of January 1, Year 3:

Cash	$	17,700
Beginning inventory		20,680		(220 @ $94)
Common stock		14,700
Retained earnings		23,680

The following five transactions occurred in Year 3:

1. First purchase (cash): 125 units @ $96
2. Second purchase (cash): 195 units @ $104
3. Sales (all cash): 375 units @ $200
4. Paid $16,100 cash for salaries expense
5. Paid cash for income tax at the rate of 25 percent of incomebefore taxes
   

Required
a. Compute the cost of goods sold and endinginventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and (3)weighted-average cost flow. Compute the income tax expense for eachmethod.
b. Use a vertical model to show the Year 3 incomestatement, balance sheet, and statement of cash flows under FIFO,LIFO, and weighted average. (Hint: Record the events underan accounting equation before preparing the statements.)

Use a vertical model to prepare the Year 3 statement of cashflows under FIFO, LIFO, and weighted average. (Do not roundintermediate calculations. Round your answers to nearest wholedollar amount. Amounts to be deducted should be indicated with aminus sign.)

	WALL'S CHINA SHOP Statements of Cash Flows For the Year Ended December 31, Year3 FIFO LIFO Weighted Average Cash flows from operatingactivities Net cash flows from operatingactivities 0 0 0 Cash flows from investingactivities Cash flows from financingactivities Net change in cash 0 0 0 Ending cash balance $0 $0 $0