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: Units Unit Cost $11 2,890 Inventory, December 31, prior year For the current years Purchase, April 11 Purchase, June 1 Sales (552 each) Operating expenses (excluding income tax expense) 8,800 7.910 10,880 12 17 $185,500 E7-7 Part 2 ces 2. Compute the difference between the pretax income and the ending inventory amount for the two cases. Comparison of Amounts Case A Cases FIFO LIFO Difference Pretax income Ending inventory 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: Units Unit Cost $11 2,890 Inventory, December 31, prior year For the current years Purchase, April 11 Purchase, June 1 Sales (552 each) Operating expenses (excluding income tax expense) 8,800 7.910 10,880 12 17 $185,500 E7-7 Part 2 ces 2. Compute the difference between the pretax income and the ending inventory amount for the two cases. Comparison of Amounts Case A Cases FIFO LIFO Difference Pretax income Ending inventory