Required Information E7-7 Analyzing and Interpreting the Financial Statement Effects of LIFO and AFO LO7-2,7-3 (The following information applies to the questions displayed below) Broadhead 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 3,699 Unit Cost $ 9 Inventory, December 31, prior year For the current year: Purchase, April 11 Purchase, June 1 Sales (sse each) Operating expenses (excluding income tax expense) 9,000 7,600 10,000 15 $195,000 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 Pretax income Ending inventory