Jan. 1 Apr. 1 Oct. 1 Beginning inventory Purchased Purchased 400 units 2,800 units 1,000 units $20 $25 $26 During the year, Parvin sold 3,570 units of inventory at $41 per unit and incurred $15.700 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 $136,500, inventory of $8,000, common stock of 5121000, and retained earnings of $23,500 Required a. Prepare income statements using FIFO and UFO. 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. 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. Complete this question by entering your answers in the tabs below. Required A Required B Required Prepare income statements using FIFO and LIFO. (Round intermediate calculations and final answers to the nearest whole dollar amount.) LIFO PARVIN COMPANY Income Statements For the Year Ended December 31 FIFO Sales Cost of goods sold (Gross margin Operating expenses Income before tax Income tax expense Net Income 0 Required B > Complete this question by entering your answers in the tabs below. Required A Required B Required Determine the amount of income tax that Parvin would pay using each cost flow method FIFO LIFO Income tax Required A Required B Required C Determine the cash flow from operating activities under FIFO and LIFO. (Round intermediate calculations and final answers to the nearest whole dollar amount.) FIFO LIFO Net cash flow from operating activities