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: Units 2,860 Unit Cost $14 Inventory, December 31, prior year For the current years Purchase, April 11 Purchase, June 1 Sales (553 each) Operating expenses (excluding income tax expense) 3,860 7,950 10,980 15 20 $185,000 E7-7 Part 2 Camute the difference between the pretax income and the ending Inventory amount for the two cases. Whits 2,860 Unit Cost $14 Inventory, December 31, prior year For the current years Purchase, April 11 Purchase, June 1 Sales ($53 each) Operating expenses (excluding income tax expense) 8,360 7,950 10,980 15 20 $185,000 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 Protax income Ending inventory