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. Unit Cost Inventory, December 31, prior year 2,890 For the current year: Purchase, April 11 3,99 Purchase, June 1 7,072 Sales ($58 each) 10,860 Operating expenses (excluding income tax expense) $194,000 Units $13 14 19 E7-7 Part 2 2. Compute the difference between the pretax income and the ending inventory amount for the two cases, 2. Compute the difference between the pretax income and the endir Comparison of Amounts Case A Case B FIFO LIFO Difference Pretax income Ending inventory