Problem: Module 2 Textbook Problem 11 Learning Objective: 27 Show how different inventory cost flow methods (specific identification, FIFO, LIFO, and weighted average) affect financial statements The following information pertains to the inventory of Parvin Company: During the year, Parvin sold 3,485 units of inventory at $41 per unit and incured $16,400 of operating experses. 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 $110.600, inventory of $6,400, common stock of $92,000, and retained earnings of $25.000 Required o. Prepare income statements using FFO 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. Required o. 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 11 Fo. (Round intermeduste calculations and finst answers to the nearest whole dollar amount.) 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 $110,600, inventory of $6,400, common stock of $92,000, and retained eamings of $25,000. Required o. 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 FFO and LFO. Complete this question by entering your answers in the tabs below. Determine the amount of income tax that Parvin would pay using each cost flow method. Parvin started the period with cash of $110,600, inventory of $6,400, common stock of $92,000, and retained earnings of $25,000 Required o. 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. Determine the cash flow from operating activities under FIFO and LIFO. (Round intermediate calculations and final answers to the nearest whole dollar amoum.)