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 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 2,930 Unit Cost $ 12 13 Inventory, December 31, prior year For the current years Purchase, April 11 Purchase, June 1 Sales ($54 each) Operating expenses (excluding income tax expense) 8,950 7.930 10,920 $191,000 E7-7 Part 1 Required: 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. EMILY COMPANY Income Statement For the Year Ended December 31, current year Case A FIFO $ 589,680 Case B LIFO $ 589,680 Sales revenue Cost of goods sold: / / Goods available for sale / DI / Cost of goods sold ||||||||| / / /