The following information pertains to the inventory of Parvin Company:Jan. 1 Beginning inventoryPurchasedPurchasedApr. 1Oct. 1During the year, Parvin sold 3,485 units of inventory at $45 per unit and incurred $15,700 of operating expenses. Parvin currently usesthe 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 $200,600, inventory of $6,400, common stock of $183,000, and retained earnings of $24,000.Requireda. 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.PARVIN COMPANYIncome StatementsFor the Year Ended December 31FIFOComplete this question by entering your answers in the tabs below.SalesCost of goods soldGross marginRequired A Required B Required CPrepare income statements using FIFO and LIFO. (Round intermediate calculations and final answers to the nearestwhole dollar amount.)Operating expensesIncome before taxIncome tax expenseNet income400 units @ $162,600 units$211,100 units @ $22$156,82585,20071,625✔ 15,70055,92516,778$39,147Answer is complete but not entirely correct.@ @ @LIFO$156,82579,75577,07015,70061,37018,411$42,959

The inventory can be valued using various methods as LIFO and FIFO. LIFO stands Last In First Out…

following information pertains to the inventory of Parvin Company: an. 1 Beginning inventory pr. 1 Purchased Purchased ct. 1 400 units @ $16 2,600 units @ $21 1,100 units @ $22 ing the year, Parvin sold 3,485 units of inventory at $45 per unit and incurred $15,700 of operating expenses. Parvin currently uses FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 30 percent income tax rate. vin started the period with cash of $200,600, inventory of $6,400, common stock of $183,000, and retained earnings of $24,000. quired Prepare income statements using FIFO and LIFO. Determine the amount of income tax that Parvin would pay using each cost flow method. Determine the cash flow from operating activities under FIFO and LIFO. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. PARVIN COMPANY Income Statements equired A Required B Required C repare income statements using FIFO and LIFO. (Round intermediate calculations and final answers to the nearest hole dollar amount.)

following information pertains to the inventory of Parvin Company: an. 1 Beginning inventory pr. 1 Purchased Purchased ct. 1 400 units @ $16 2,600 units @ $21 1,100 units @ $22 ing the year, Parvin sold 3,485 units of inventory at $45 per unit and incurred $15,700 of operating expenses. Parvin currently uses FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 30 percent income tax rate. vin started the period with cash of $200,600, inventory of $6,400, common stock of $183,000, and retained earnings of $24,000. quired Prepare income statements using FIFO and LIFO. Determine the amount of income tax that Parvin would pay using each cost flow method. Determine the cash flow from operating activities under FIFO and LIFO. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. PARVIN COMPANY Income Statements equired A Required B Required C repare income statements using FIFO and LIFO. (Round intermediate calculations and final answers to the nearest hole dollar amount.)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 3RE: Shaquille Corporation began the current year with inventory of 50,000. During the year, its...

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