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Required information (The following information applies to the questions displayed below.) The following information pertains...

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Accounting

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Required information (The following information applies to the questions displayed below.) The following information pertains to the inventory of Parvin Company for Year 3: Jan. 1 Apr. 1 Oct. 1 Beginning inventory Purchased Purchased 500 units @ $19 2,900 units @ $24 1,100 units @ $25 During Year 3, Parvin sold 3,825 units of inventory at $43 per unit and incurred $15,100 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 $80,000, inventory of $9,500, common stock of $65,000, and retained earnings of $24,500. Required a. Prepare income statements using FIFO and LIFO. (Round intermediate calculations and final answers to the nearest whole dollar amount.) LIFO 164,475 PARVIN COMPANY Income Statements For the Year Ended December 31, Year 3 FIFO Sales $ 164,475 $ Cost of goods sold Gross margin Operating expenses 15,100 Income before tax (15,100) Income tax expense Net income 15,100 (15,100)

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