View Policies Show Attempt History Current Attempt in Progress Ayayal Company reported the following summarized annual data at the end of 2022: Sales revenue $ 1,640,000 Cost of goods sold 884,000 Gross margin 756,000 Operating expenses 392,000 Income before income taxes $ 364,000 Based on an ending FIFO inventory of $ 245,000 The income tax rate is 30%. The controller of the company is considering a switch from FIFO to LIFO. He has determined that ons LIFO basis, the ending inventory would have been $ 201,000. (a) ta Your answer is correct Restate the summary information on LIFO basis. Restate to a LIFO basis: 1640000 Sales Reven 928000 Cost of Goods Sold 712000 Gross Margin 392000 Operating Expenses 320000 Income Before Income Taxes e Textbook and Media Attempts: 1 of 3 used b) What effect, if any, would the proposed change have on Ayayar's income tax expense, net income, and cash flows? If the company switch to LIFO: Income tax expense will by $ 1. Net income will by s 2. Cash balance will by $ 3 SA Assistance Used Textbook and Media