! Required information P7-4 (Algo) Analyzing and Interpreting Income Manipulation Under the LIFO Inventory Method L07-2, 7-3 [The following information applies to the questions displayed below.] Pacific Company sells electronic test equipment that it acquires from a foreign source. During the year, the inventory records reflected the following: Units 25 Beginning inventory Purchases Sales (52 units at $24,650 each) Unit Cost $11,670 10,170 Total Cost $ 291,750 416,970 41 Inventory is valued at cost using the LIFO inventory method. P7-4 Part 2 2. The management, for various reasons, is considering buying 25 additional units before December 31 year-end at $9,670 each. Restate the income statement (and ending inventory), assuming that this purchase is made on December 31. Assume the LIFO method and the periodic inventory system are used by the company. PACIFIC COMPANY Income Statement For the Current Year Ended Sales revenue Cost of goods sold Gross profit Expenses 291,000 Pretax income Ending inventory