! Required information The following information applies to the questions displayed below.] The following information pertains to the inventory of Parvin Company for Year 3: Beginning inventory 300 units @ $21 Purchased 2,600 units @ $26 Purchased 1,100 units @ $27 January 1 April 1 October 1 During Year 3, Parvin sold 3,400 units of inventory at $45 per unit and incurred $15,200 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 $53,200, inventory of $6,300, common stock of $35,000, and retained earnings of $24,500. Required Prepare income statements using FIFO and LIFO. Note: Round intermediate calculations and final answers to the nearest whole dollar amount. PARVIN COMPANY Income Statements For the Year Ended December 31, Year 3 FIFO LIFO
! Required information The following information applies to the questions displayed below.] The following information pertains to the inventory of Parvin Company for Year 3: Beginning inventory 300 units @ $21 Purchased 2,600 units @ $26 Purchased 1,100 units @ $27 January 1 April 1 October 1 During Year 3, Parvin sold 3,400 units of inventory at $45 per unit and incurred $15,200 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 $53,200, inventory of $6,300, common stock of $35,000, and retained earnings of $24,500. Required Prepare income statements using FIFO and LIFO. Note: Round intermediate calculations and final answers to the nearest whole dollar amount. PARVIN COMPANY Income Statements For the Year Ended December 31, Year 3 FIFO LIFO
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![!
Required information
The following information applies to the questions displayed below.]
The following information pertains to the inventory of Parvin Company for Year 3:
Beginning inventory 300 units @ $21
Purchased 2,600 units @ $26
Purchased 1,100 units @ $27
January 1
April 1
October 1
During Year 3, Parvin sold 3,400 units of inventory at $45 per unit and incurred $15,200 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 $53,200, inventory of $6,300, common stock of $35,000,
and retained earnings of $24,500.
Required
Prepare income statements using FIFO and LIFO.
Note: Round intermediate calculations and final answers to the nearest whole dollar amount.
PARVIN COMPANY
Income Statements
For the Year Ended December 31, Year 3
FIFO
LIFO](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F53d3adc2-90c2-4967-b08b-fcfa05352e69%2F75984baa-6529-4b0f-9e84-d2819996b113%2F1543dp8_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
The following information applies to the questions displayed below.]
The following information pertains to the inventory of Parvin Company for Year 3:
Beginning inventory 300 units @ $21
Purchased 2,600 units @ $26
Purchased 1,100 units @ $27
January 1
April 1
October 1
During Year 3, Parvin sold 3,400 units of inventory at $45 per unit and incurred $15,200 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 $53,200, inventory of $6,300, common stock of $35,000,
and retained earnings of $24,500.
Required
Prepare income statements using FIFO and LIFO.
Note: Round intermediate calculations and final answers to the nearest whole dollar amount.
PARVIN COMPANY
Income Statements
For the Year Ended December 31, Year 3
FIFO
LIFO
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