ces■■IJanuary 1April 1October 1IRequired information[The following information applies to the questions displayed below.]Beginning InventoryPurchasedPurchasedThe following information pertains to the inventory of Parvin Company during Year 2.Cash flows from operating activities:Cash inflow from customers.Cash outflow for inventoryCash outflow for operating expensesCash outflow for income tax expenseNet cash flow from operating activitiesParvin CompanyCash Flows from Operating ActivitiesFIFO■■500 units @ $342,200 units @ $39700 units @ $42$ 320,000$During Year 2, Parvin sold 3,100 units of inventory at $85 per unit and incurred $42,500 of operating expenses. Parvincurrently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 40percent income tax rate. Parvin started the period with cash of $77,000, inventory of $17,000, common stock of $52,000,and retained earnings of $42,000.d. Determine the cash flow from operating activities under FIFO and LIFO. (Amounts to be deducted should be indicated with msign.)LIFO■90■320,000 $esto■■■■■T

Required information [The following information applies to the questions displayed below.] The following information pertains to the inventory of Parvin Company during Year 2. Beginning Inventory Purchased Purchased 500 units @ $34 2,200 units @ $39 700 units @ $42 Sin During Year 2, Parvin sold 3,100 units of inventory at $85 per unit and incurred $42,500 of operating expenses. Parvin currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 40 percent income tax rate. Parvin started the period with cash of $77,000, inventory of $17,000, common stock of $52,000, and retained earnings of $42,000. January 1 April 1 October 1 d. Determine the cash flow from operating activities under FIFO and LIFO. (Amounts to be deducted should be indicated with m sign.) Parvin Company Cash Flows from Operating Activities FIFO Cash flows from operating activities: Cash inflow from customers Cash outflow for inventory Cash outflow for operating expenses Cash outflow for income tax expense Net cash flow from operating activities $ 320,000 $ 320,000 $ LIFO 0

Required information [The following information applies to the questions displayed below.] The following information pertains to the inventory of Parvin Company during Year 2. Beginning Inventory Purchased Purchased 500 units @ $34 2,200 units @ $39 700 units @ $42 Sin During Year 2, Parvin sold 3,100 units of inventory at $85 per unit and incurred $42,500 of operating expenses. Parvin currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 40 percent income tax rate. Parvin started the period with cash of $77,000, inventory of $17,000, common stock of $52,000, and retained earnings of $42,000. January 1 April 1 October 1 d. Determine the cash flow from operating activities under FIFO and LIFO. (Amounts to be deducted should be indicated with m sign.) Parvin Company Cash Flows from Operating Activities FIFO Cash flows from operating activities: Cash inflow from customers Cash outflow for inventory Cash outflow for operating expenses Cash outflow for income tax expense Net cash flow from operating activities $ 320,000 $ 320,000 $ LIFO 0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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