Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Problem: Module 2 textbook Problem 11 Return to question Learning Objective: 2-7 Show how different inventory cost flow methods (specific identification, FIFO, LIFO, and weighted average) affect financial statements The following information pertains to the inventory of Parvin Company Jan. 1 Apr. 11 Oct. 1 Beginning inventory Purchased Purchased 480 units 2,600 units 900 units $21 $26 $27 During the year, Parvin sold 3,315 units of inventory at $41 per unit and incurred $18,800 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 $102.100, Inventory of $8,400, common stock of $87,000, and retained earnings of $23,500 Required a. Prepare income statements using FIFO and LIFO b. Determine the amount of income tax that Parvin would pay using each cost flow method c. Determine the cash flow from operating activities under FIFO and LIFO < Prey 11 of 20 Next >