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4 Part 1 of 3 Required Information E7-7 (Algo) Analyzing and Interpreting the Financial Statement Effects of LIFO and FIFO LO7-2, 7-3 [The following information applies to the questions displayed below! Emilly 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: 2.85 points Unito 2,020 Unit Coat 314 Inventory, December 31, prior year for the current year Pacche, April 1 Parehand, June Salon (550 ench) Operating expenses (excluding incon tax expense) 8.90 7.340 10,970 15 20 $185,500 E7-7 Part 1 Required: 1. Prepare o separate income statement through pretax income that details cost of goods sold for (a) Case A: RFO and ( Case : LIFO. Answer is not complete. EMILY COMPANY Income Saturn For the Year Ended December 31, current year CA HIFO UFO Cost of goods sold Beginning inventory Purchase Purch Goods we for sale Ending Oy OOOO 0 0 Cost of goods sold doo Operating OO Required information E7-7 (Algo) Analyzing and Interpreting the Financial Statement Effects of LIFO and FIFO LO7-2,7-3 [The following Information applies to the questions displayed below) Emily Company uses a perlodic 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: Unita 2,820 Unit Cost $14 Inventory, December 31, prior year For the current years Purchase, April 11 Purchase, June 1 Sales ($50 och) Operating expenses excluding income tax expense) 8,980 7,840 10,979 15 20 $185,500 E7-7 Part 2 2. Compute the difference between the pretax income and the ending inventory anbount for the two cases. Comparison of Amounts Case A Cane B FIFO LIFO Difference Pretax income Ending inventory