25. Cash Flow Statement Preparation, Variance Analysis, and Inventory Valuation (LIFO Method):

JKL Company's net income for the year was $400,000. Depreciation expense amounted to $50,000. Accounts receivable increased by $30,000, accounts payable decreased by $20,000, and the company purchased new equipment for $100,000. Prepare the cash flow statement using the indirect method. Analyze the variance between net income and cash flow from operating activities. Additionally, JKL Company uses the Last-In, First-Out (LIFO) method for inventory valuation. The company purchased 1,000 units of Product X at $10 per unit, 800 units at $12 per unit, and 600 units at $14 per unit during the year. Calculate the value of ending inventory and cost of goods sold using the LIFO method.