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: Unit Units Cost Inventory, December 31, prior year For the current year: Purchase, April 11 8,910 Purchase, June 1 7,870 19 Sales (558 each) 10,870 Operating expenses (excluding income tax expense) $185,500 2,900 $13 14 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 () Case B: LIFO EMILY COMPANY Income Statement For the Year Ended December 31, current year Case A FIFO Cases LIFO Cost of goods sold 0 0 Goods available for sale Cost of goods sold