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 $18 2,700 units $23 1.000 units $24 During Year 3, Parvin sold 3,485 units of inventory at $42 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 $95,800, Inventory of $7,200, common stock of $79,000, and retained earnings of $24,000. Exercise 5-6 Part a a. Prepare income statements using FIFO and LIFO. (Round intermediate calculations and final answers to the nearest whole dollar amount.) Answer is not complete. PARVIN COMPANY Income Statements For the Year Ended December 31, Year 3 FIFO LIFO 146,370 111,260 146,370 111,260 Sales Cost of goods sold Gross margin Operating expenses Income before tax Income tax expense Net Income 18,100 (18,100) 18,100 (18,100) b. Determine the amount of income tax that Parvin would pay using each cost flow method income to $12.50 320 Exercise 5-6 Part c. Determine the cash flow from operating activities under FIFO and LIFO. (Round Intermediate calcu nearest whole dollar amount. Amounts to be deducted should be indicated with minus sign) FO LO 20170520100 Nowompeting activities