Required information Exercise 5-6 Income tax effect of shifting from FIFO to LIFO LO 5-1 [The following information applies to the questions displayed below] The following information pertains to the inventory of Parvin Company for Year 3: Jan. 1 Apr. 1 Oct. 1 Beginning inventory Purchased Purchased 300 units $19 2,000 units $24 1,200 units $25 During Year 3, Parvin sold 3,655 units of inventory at $40 per unit and incurred $17,300 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 $156,300, Inventory of $5,700, common stock of $138,000, and retained earnings of $24,000. Exercise 5-6 Part c c. Determine the cash flow from operating activities under FIFO and LIFO. (Round Intermediate calculations and final answers to the nearest whole dollar amount. Amounts to be deducted should be indicated with minus sign.) FIFO LIFO Net cash flow from operating activities