Jan. 1 Apr. 1 Oct. 1 Beginning inventory Purchased Purchased 500 units 2,900 units 1,100 units @ @ @ $15 $20 $21 During the year, Parvin sold 3,825 units of inventory at $40 per unit and incurred $17,200 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 $178,500, inventory of $7,500, common stock of $161,000, and retained earnings of $25,000. 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. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare income statements using FIFO and LIFO. (Round intermediate calculations and final answers to the nearest whole dollar amount.) PARVIN COMPANY Income Statements For the Year Ended December 31 FIFO LIFO $ Sales 153,000 153,000 Cost of goods sold 69,091 X 77,600 Gross margin 83,909 X 75,400 Operating expenses (17,200) (17,200) Income before tax 66,709 58,200 Income tax expense (20,012) 17,460 Net income $ 46,696 $ 40,740 oooo c. Determine the cash flow from operating activities under FIFO and LIFO. X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required C Determine the amount of income tax that Parvin would pay using each cost flow method. FIFO LIFO Income tax $ 20,012 X $ 17,460 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required C Determine the cash flow from operating activities under FIFO and LIFO. (Round intermedia the nearest whole dollar amount.) FIFO LIFO Net cash flow from operating activities $ 34,687 X $ 37,240