Required information The following information applies to the questions displayed below) The following information pertains to the inventory of Parvin Company for Year 3 Jan. 1 Apr1 Oct. 1 Beginning Inventory Purchased Purchased 400 units 517 2.600 units 522 1,200 units 323 During Year 3. Parvin sold 3.740 units of inventory at $42 per unit and incurred 516,800 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 $126,200, inventory of $6,800, common stock of $110.000 and retained earnings of $23.000 Required a. 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, Year) FIFO Sales Cost of goods sold Gross margin Operating expenses Income before tax Income tax expense Net income 0 Required information [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 400 units @ $17 2,500 units @ $22 1,200 units @ $23 During Year 3, Parvin sold 3,740 units of inventory at $42 per unit and incurred $16,800 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 $126, 200, inventory of $6,800, common stock of $110,000, and retained earnings of $23,000 b. Determine the amount of income tax that Parvin would pay using each cost flow method FIFO LIFO Income tax Required information 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 400 units @ $17 2,800 units @ $22 1,200 units 323 During Year 3. Parvin sold 3,740 units of inventory at $42 per unit and incurred $16,800 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 $126,200, inventory of $6.800, common stock of 5110,000 and retained earnings of $23,000 c. Determine the cash flow from operating activities under FIFO and LIFO (Round intermediate calculations and final answers to the nearest whole dollar amount. Cash outflows should be indicated with minus sign.) FIFO LIFO Net cash flow from operating activities