7 O Required information [The following information applies to the questions displayed below) The following information pertains to the inventory of Parvin Company during Year 2: Jan. 1 Apr. 1 Oct. 1 Beginning Inventory Purchased Purchased 400 units @ $30 2,000 units @ $35 600 units @ $38 sed During Year 2. Parvin sold 2700 units of inventory at $90 per unit and incurred $41,500 of operating expenses. Parvin currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 30 percent income tax rate. Parvin started the period with cash of $75,000, inventory of $12,000, common stock of $50,000, and retained earnings of $37,000. b. Prepare income statements using FIFO and LIFO. PARVIN COMPANY Income Statements For the Year Ended December 31, Year 2 FIFO Cost of goods sold: 0 Cost of goods sold 0 Required information Cost of goods sold: 0 Cost of goods sold 0 0 $ 0 LIFO Cost of goods sold: 0 Cost of goods sold 0 0 $ $ 0