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Part 2:

E7-7 (Algo) Analyzing and Interpreting the Financial Statement Effects of LIFO and FIFO LO7-2, 7-3 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 : 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. 2. Compute the difference between the pretax income and the ending inventory amount for the two cases. Complete this question by entering your answers in the tabs below. Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B: LIFO. Complete this question by entering your answers in the tabs below. Compute the difference between the pretax income and the ending inventory amount for the two cases. Note: Loss amounts should be indicated with a minus sign