Question

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

Cash	$	18,300
Beginning inventory		17,400		(200 @ $87)
Common stock		15,600
Retained earnings		20,100

The following five transactions occurred in Year 3:

1. First purchase (cash): 120 units @ $89
2. Second purchase (cash): 195 units @ $97
3. Sales (all cash): 350 units @ $193
4. Paid $13,800 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) 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.)

I need the Retained earnings for the FIFO LIFO AND WA? please it is not 20100

also I need in the cash flow statement I need the cash flows investing activity and plus; beginning cash balance ?

AND THIS QUESTION;;

At the end of the year, Randy’s Parts Co. had the following items in inventory:

Item	Quantity			Unit Cost				Unit Market Value
P1		60			$	85			$	90
P2		40				70				72
P3		80				130				120
P4		70				125				130

Required
a. Determine the amount of ending inventory using the lower-of-cost-or-market rule applied to each individual inventory item.
  

b. Provide the adjustment necessary to write down the inventory based on Requirement a. Assume that Randy’s Parts Co. uses the perpetual inventory system.
  

c. Determine the amount of ending inventory, assuming that the lower-of-cost-or-market rule is applied to the total inventory in aggregate.
  

d. Provide the adjustment necessary to write down the inventory based on Requirement c. Assume that Randy’s Parts Co. uses the perpetual inventory system.

Answer 1