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 2,860 Unit Cost $14 Inventory, December 31, prior year For the current year Purchase, April 11 Purchase, une 1 Sales ($59 each) Operating expenses (excluding income tax expense) 3,060 7.950 10,9110 15 20 $185,000 7-7 Part 1 1. Prepare a separate income statement through pretax income that details cost of goods sold for ( Case A: FIFO and ( Case : LIFO. 13 EMILY COMPANY Income Statement For the Year Ended December 31, current year Case A FIFO Case B LIFO ok Cost of goods sold 1 at nces Goods available for sale 0 0 Cost of goods sold