Emily Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2: Units Unit Cost Inventory, December 31, prior year 2,970 $ 12 For the current year: Purchase, April 11 8,860 13 Purchase, June 1 7,860 18 Sales ($58 each) 10,830 Operating expenses (excluding income tax expense) $ 192,500

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Operating expenses (excluding income tax expense) $192,500 Required: 1. Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A LIFO. EMILY COMPANY Income Statement For the Year Ended December 31, current year Case A Case B LIFO FIFO $ Sales revenue 628,140 $ 628,140 Cost of goods sold: Beginning inventory Purchases 35,640 256,660 35,640 256,660 Goods available for sale Ending inventory 292,300 154,480 292,300 112,210 Cost of goods sold Gross profit Operating expenses 192,500 192,500 Pretax income