I NEED HELP WITH THIS QUESTION PLEASE. PREFERABLY FORMAT THE GRAPH THE WAY THAT IT IS ON PART 1. THIS QUESTION HAS 3 PARTS

4 Part 1 of 3 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: 5 points Units 2,840 Unit Cost $11 eBook Inventory, December 31, prior year For the current year: Purchase, April 11 Purchase, June 1 Sales ($60 each) Operating expenses (excluding income tax expense) Hint 8,930 8,000 10,910 12 17 $189,500 Print Reference E7-7 Part 1 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 $ 654,600 $ 654,600 Cost of goods sold: Beginning inventory $ 31,240 $ 31,240 Purchases 243,160 243,160 274,400 274,400 Goods available for sale Ending inventory Cost of goods sold Gross profit Operating expenses Pretax income 5 Part 2 of 3 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: 5 points Units Unit Cost $11 eBook 2,840 Inventory, December 31, prior year For the current year: Purchase, April 11 Purchase, June 1 Sales ($60 each) Operating expenses (excluding income tax expense) Hint 8,930 8,000 10,910 12 17 $189,500 Print Reference 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 6 para di Part 3 of 3 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: 5 points Units Unit Cost $11 eBook 2,840 Inventory, December 31, prior year For the current year: Purchase, April 11 Purchase, June 1 Sales ($60 each) Operating expenses (excluding income tax expense) Hint 8,930 8,000 10,910 12 17 $189,500 Print Reference E7-7 Part 3 3. Which inventory costing method may be preferred for income tax purposes? Which inventory costing method may be preferred for income tax purposes