Peralta Persian Rugs sells hand-knotted rugs. The owner uses FIFO to track her costs. Here are the inventory records for one specific style of rug: On October 31 , a designer for a wealthy customer purchases three rugs paying $2,600 for each. Peralta immediately replaces those rugs with three new rugs costing $2,300 apiece. She immediately pays the estimated tax on the sale at 25% (and we will pretend she has no other expenses). A. What would be her net income from the sale of the rugs? B. What is her net cash flow from the sale of the rugs and payment of taxes, and subsequent purchase of three new rugs? C. Why is there a substantial difference between net income and cash flow? D. What other circumstances can lead to differences similar to those illustrated in the case? E. What would be her net income if she had used LIFO instead? F. If she has used LIFO, would there be as big a discrepancy between net income and cash flow