The following information pertains to the inventory of Parvin Company: Jan. 1 Beginning Inventory 650 units @$40 Apr. 1 Purchased 2,500 units @$45 Oct. 1 Purchased 850 units @$48

During 2016, Parvin sold 3,500 units of inventory at $80 per unit and incurred $44,000 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 $80,000, inventory of $26,000, common stock of $55,000, and retained earnings of $51,000. Find the cost of goods sold for LIFO.

Journal entry worksheet 2 3 4 6 Record entry for cost of goods sold. Note: Enter debits before credits. Date General Journal Debit Credit lerchandise inventory Record entry Clear entry View general journal d. Determine the cash flow from operating activities under FIFO and LIFO. (Amounts to be deducted should be indicated with minus sign.) PRAVIN Company Cash Flows from Operating Activities FIFO LIFO Cash flows from operating activities: Cash inflow from customers Cash outflow for inventory Cash outflow for operating expenses Cash outflow for income tax expense Net cash flow from operating activities S