! Required information [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 Unit Cost $10 2,880 11 Inventory, December 31, prior year For the current year: Purchase, April 11 Purchase, June 1 Sales ($55 each) Operating expenses (excluding income tax expense) 8,860 7,900 10,870 16 $187,000 Required: 1. Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B: LIFO. EMILY COMPANY Income Statement For the Year Ended December 31, current year Case A Case B FIFO LIFO Sales revenue 597,850 $ 597,850 Cost of goods sold: Beginning inventory Purchases 28,800 $ 28,800 223,860 223,860 Goods available for sale 252,660 252,660 Ending inventory Cost of goods sold Gross profit Operating expenses 187,000 187,000 Pretax income