The following information pertains to the inventory of Parvin Company during Year 2:

Jan. 1	Beginning Inventory	400	units	@	$	30
Apr. 1	Purchased	2,150	units	@	$	35
Oct. 1	Purchased	600	units	@	$	38

During Year 2, Parvin sold 2,900 units of inventory at $90 per unit and incurred $47,000 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 $86,000, inventory of $12,000, common stock of $61,000, and retained earnings of $37,000.

Exercise 5-6A Part d

d. Determine the cash flow from operating activities under FIFO and LIFO. (Amounts to be deducted should be indicated with minus sign.)

	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 activites	$0	$0