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: 3 Units Unit Cost $15 2,820 Inventory, December 31, prion year For the current year: Purchase, April 11 Purchase, June 1 Sales ($51 each) Operating expenses (excluding income tax expense) 8,890 7,860 10,989 16 21 $186,000 Required: 1. Prepare a separate income statement through pretax income that detalls 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 FIFO S 559,980 Case B LIFO Sales revenue 659.980 Cost of goods sold: Beginning inventory Purchases 3 42.300 $ 421300 305,860 205.860 343.160 348 160 Goods available for sale Ending inventory Cost of goods sold Gross profit Operating expenses Bretax income CTP 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 $15 2,820 Inventory) December 31, prior year For the current year! Purchase, April 11 Purchase, une 1 Sales ($51 each) Operating expenses (excluding income tax expense) 8,888 7860 10,980 15 21 $185.ee 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