The following information pertains to the inventory of Parvin Company: Jan. 1 Beginning inventory Apr....
60.1K
Verified Solution
Link Copied!
Question
Accounting
The following information pertains to the inventory of Parvin Company: Jan. 1 Beginning inventory Apr. 1 Purchased Oct. 1 Purchased 500 units @ $20 2,500 units @ $25 1,100 units @ $26 During 2018, Parvin sold 3,485 units of inventory at $42 per unit and incurred $18,500 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 $74,000, inventory of $10,000, common stock of $59,000, and retained earnings of $25,000. c. Determine the cash flow from operating activities under FIFO and LIFO. (Round intermediate calculations and final answers to the nearest whole dollar amount. Amounts to be deducted should be indicated with minus sign.) FIFO I LIFO Net cash flow from operating activities
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
