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 : 1. Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B: LIFO. 2. Compute the difference between the pretax income and the ending inventory amount for the two cases. \begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{6}{|c|}{ EMILY COMPANY } \\ \hline \multicolumn{6}{|c|}{ Income Statement } \\ \hline \multicolumn{6}{|c|}{ For the Year Ended December 31, current year } \\ \hline & \multicolumn{2}{|c|}{ Case A } & \multicolumn{3}{|c|}{ Case B } \\ \hline & \multicolumn{2}{|c|}{ FIFO } & \multicolumn{3}{|c|}{ LIFO } \\ \hline Sales revenue & & $500,000 & & $ & 500,000 \\ \hline \multicolumn{6}{|l|}{ Cost of goods sold: } \\ \hline Beginning inventory & 27,000 & & $27,000 & & \\ \hline Purchases & 195,000 & & 195,000 & & \\ \hline Goods available for sale & 222,000 & & 222,000 & & \\ \hline Ending inventory & 87,000 & & 132,000 & & \\ \hline Cost of goods sold & & 135,000 & & & 97,000 \\ \hline Gross profit & & 428,000 & & & 368,000 \\ \hline Operating expenses & & 190,000 & & & 190,000 \\ \hline Pretax income & & $238,000 & & $ & 178,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline & \multicolumn{5}{|c|}{ Comparison of Amounts } \\ \hline & \multirow{2}{*}{\multicolumn{2}{|c|}{\begin{tabular}{c} Case A \\ FIFO \end{tabular}}} & \multirow{2}{*}{\multicolumn{2}{|c|}{\begin{tabular}{c} Case B \\ LIFO \end{tabular}}} & \multirow{2}{*}{ Difference } \\ \hline & & & & & \\ \hline Pretax income & $ & 223,000 & $ & 185,000 & 38,000 \\ \hline Ending inventory & $ & 135,000 & $ & 97,000 & 38,000 \\ \hline \end{tabular}