The following information pertains to the inventory of Parvin Company: Jan. 1 Beginning inventory 400 units @ $ 22 Apr. 1 Purchased 2,600 units @ $ 27 Oct. 1 Purchased 900 units @ $ 28 During the year, Parvin sold 3,315 units of inventory at $40 per unit and incurred $18,100 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 $50,200, inventory of $8,800, common stock of $35,000, and retained earnings of $24,000. Required Prepare income statements using FIFO and LIFO. Determine the amount of income tax that Parvin would pay using each cost flow method. Determine the cash flow from operating activities under FIFO and LIFO.