During the year, Parvin sold $3,825$ units of inventory at $$44$ per unit and incurred $$18,000$ 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 $$210,500,$ inventory of $$8,000,$ common stock of $$194,000,$ and retained earnings of $$24,500.$

Required

a$.$ Prepare income statements using FIFO and LIFO.

b$.$ Determine the amount of income tax that Parvin would pay using each cost flow method.

c$.$ Determine the cash flow from operating activities under FIFO and LIFO.

Complete this question by entering your answers in the tabs below.

Prepare income statements using FIFO and LIFO. $($Round intermediate calculations and final answers to the nearest whole

dollar amount.$)$