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 2,850 Unit Cost $11 Inventory, December 31, prior year For the current year: Purchase, April 11 Purchase, June 1 Sales ($54 each) Operating expenses (excluding income tax expense) 8,990 7,990 10,930 12 17 $194,000 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 LIFO. EMILY COMPANY Income Statement For the Year Ended December 31, current year Case A FIFO Case B LIFO Cost of goods sold: Goods available for sale 0 0 Cost of goods sold Store Required information E7-7 (Algo) Analyzing and Interpreting the Financial Statement Effects of LIFO and FIFO L07-2,7-3 [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 2.150 Inventory, December 31, prior year For the current year! Purchase, April 11 Purchase, June 1 Sales (554 each) Operating expenses (excluding income tax expense) 3,990 7,90 10,930 12 17 $195,000 7-7 Part 1 Required: 1. Prepare a separate income statement through pretax income that details cost of goods sold for in Case A: FIFO and (CAL LIFO EMILY COMPANY Income Statement For the Year Ended December 31, current year Case A FIFO Case B LIO Cost of goods sold Goods available for sale Cost of goods sold 2