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 @ $ 22 2,800 units @ $27 900 units @ $28 During Year 3, Parvin sold 3,485 units of inventory at $41 per unit and incurred $16,100 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 $131,200, inventory of $8,800, common stock of $115,000, and retained earnings of $25,000. 1. Acquired $14,500 cash from the issue of common stock. 2. Purchased inventory for $6,300 cash. 3. Sold inventory costing $3,780 for $6,426 cash. 4. Paid $950 for advertising expense. Required Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, and NC for net change in cash. (Enter any decreases to account balances and cash outflows with a minus sign. Not all cells in the "Statement of Cash Flows" column may require an input - leave cells blank if there is no corresponding input needed.) MILO CLOTHING Effect of Events on the Financial Statements Stockholders' Equity Common Retained Revenue - Expenses = Stock Earnings Assets = + Inventory = Event Net Income Statement of Cash Flows Cash + + + + + Total +