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 2,900 Unit Cost $13 Inventory, December 31, prior year For the current year: Purchase, April 11 Purchase, June 1 Sales ($53 each) Operating expenses (excluding income tax expense) 8,830 7,930 10,960 14 19 $191,500 Income Statement For the Year Ended December 31, current year Case A FIFO $ 580,880 Case B LIFO | $ 580,880 Sales revenue Cost of goods sold: s sold: Beginning inventory Purchases 37,700 274,290 37,700 274,290 311,990 311,990 Goods available for sale Ending inventory Cost of goods sold Gross profit Operating expenses Pretax income 2. Compute the difference between the pretax income and the ending inventory amount for the two cases. Comparison of Amounts Case A Case B FIFO LIFO Difference Pretax income Ending inventory