During Year 2, 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 $37,000.

B. Prepare the income statements using FIFO and LIFO

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 480 units @ $30 2,800 units @ $35 6e0 units @ $38 During Year 2. 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 $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: Cost of goods sold 0 0 0 S 0 LIFO Cost of goods sold: Cost of goods sold 0 0 0 S 0