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 $10 Inventory, December 31, prior year For the current year: Purchase, April 11 Purchase, June 1 Sales (552 each) Operating expenses (excluding income tax expense) 8,928 7,860 10,820 11 16 $ 193,500 E7-7 Part 2 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