$[$The following information applies to the questions displayed below.$]$

The following information pertains to the inventory of Parvin Company for Year $3$:

January $1$ Beginning inventory $300$ units @ $$21$

April $1$ Purchased $2,600$ units @ $$26$

October $1$ Purchased $1,100$ units @ $$27$

During Year $3,$ Parvin sold $3,400$ units of inventory at $$45$ per unit and incurred $$15,200$ 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 $$53,200,$ inventory of $$6,300,$ common stock of $$35,000,$ and retained earnings of $$24,500.$

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.