Pacific Company sells electronic test equipment that it acquires from a foreign source. During the year, the inventory records reflected the following: Beginning inventory Purchases Sales (48 units at $24,600 each) Units 24 40 Unit Cost $11,680 10,180 Total Cost $ 280,320 407,200 Inventory is valued at cost using the LIFO inventory method. Required: 1. Complete the following income statement summary using the LIFO method and the periodic inventory system. PACIFIC COMPANY Income Statement For the Current Year Ended Sales revenue 1,180,800 Cost of goods sold Gross profit Expenses 298,000 Pretax income Ending inventory Pacific Company sells electronic test equipment that it acquires from a foreign source. During the year, the inventory records reflected the following: Beginning inventory Purchases Sales (48 units at $24,600 each) Units 24 40 Unit Cost $11,680 10,180 Total Cost $ 280, 320 407, 200 Inventory is valued at cost using the LIFO inventory method. 2. The management, for various reasons, is considering buying 24 additional units before December 31 year-end at $9,680 each. Restate the income statement and ending inventory), assuming that this purchase is made on December 31. Assume the LIFO method and the periodic inventory system are used by the company. PACIFIC COMPANY Income Statement For the Current Year Ended Sales revenue Cost of goods sold Gross profit Expenses Pretax income Ending inventory 298,000 Pacific Company sells electronic test equipment that it acquires from a foreign source. During the year, the inventory records reflected the following: Beginning inventory Purchases Sales (48 units at $24,600 each) Units 24 40 Unit Cost $11,680 10,180 Total Cost $ 280,320 407,200 Inventory is valued at cost using the LIFO inventory method. 3a. How much did pretax income change because of the decision on December 31, current year? 3b. Assuming that the unit cost of test equipment is expected to continue to decline during the following year, is there any evidence of income manipulation? Complete this question by entering your answers in the tabs below. Req Req 3B How much did pretax income change because of the decision on December 31, current year? Pretax income increased by