The following information pertains to the inventory of

Last updated: 6/19/2023

The following information pertains to the inventory of Parvin Company during Year 2 Beginning Inventory Purchased Purchased 400 units 30 2 000 units 35 600 units 38 January 1 April 1 October 1 During Year 2 Parvin sold 2 700 units of inventory at 90 per unit and incurred 41 500 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 75 000 inventory of 12 000 common stock of 50 000 and retained earnings of 37 000 Determine the cash flow from operating activities under FIFO and LIFO Amounts to be deducted should be indicated with minus sign