Required information E7-7 (Algo) Analyzing and Interpreting the Financial Statement Effects of LIFO and FIFO LO7-2, (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 t year, the accounting records provided the following information for product 2: Units 2,900 Unit Cost $13 Inventory, December 31, prior year For the current year! Purchase, April 11 Purchase, June 1 Sales ($56 each) Operating expenses (excluding income tax expense) 8,820 7,900 11,000 19 $193,500 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 (4 LIFO. EMILY COMPANY Income Statement For the Year Ended December 31, current year Case A FIFO $ 616,000 Case B LIFO $ 616,000 Sales revenue Cost of goods sold Beginning inventory Purchases $ $ 37,700 273,580 37,700 273,580 311,280 Goods available for sale Ending inventory 311,280 720 151,100 Cost of goods sold Gross profit