B. income tax for FIFO & LIFO?

C net cash flow from operating expenses for FIFO & LIFO

Required information [The following information applies to the questions displayed below.] The following information pertains to the inventory of Parvin Company for Year 3: Jan. 1 Beginning inventory Apr. 1 Purchased Oct. 1 Purchased 400 units $30 2,000 units $35 600 units $38 During Year 3, Parvin sold 2,700 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 $37000 a. Prepare income statements using FIFO and LIFO PARVIN COMPANY Income Statements For the Year Ended December 31, Year 3 FIFO LIFO Sales Cost of goods sold Gross margin Operating expenses Income before tax Sales Net loss