! Required information (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: Beginning inventory Purchases Sales (48 units at $24,640 each) Units 21 39 Unit Cost $11,600 10,100 Total Cost $ 243,600 393,900 Inventory is valued at cost using the LIFO inventory method. Required: 1. Complete the following income statement summary using the LIFO method and the periodic inventory system. PACIFIC COMPANY Income Statement For the Current Year Ended Sales revenue Cost of goods sold Gross profit Expenses Pretax income Ending inventory 297,000 Required information [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: Beginning inventory Purchases Sales (48 units at $24,640 each) Units 21 39 Unit Cost $11,600 10,100 Total Cost $ 243,600 393,900 Inventory is valued at cost using the LIFO inventory method. 2. The management, for various reasons, is considering buying 21 additional units before December 31 year-end at $9,600 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 Pretax income Ending inventory 297,000 Req Req 3B How much did pretax income change because of the decision on December 31, current year? Pretax income by Req Req 3B Assuming that the unit cost of test equipment is expected to continue to decline during the following year, is evidence of income manipulation? Is there any evidence of income manipulation