Under U.S. GAAP, LIFO is an acceptable inventory method. Listed below is financial statement information for three companies that use LIFO. All table numbers are in millions of dollars.

*Autos and trucks only

Assume these companies adopted IFRS, and thus were required to use FIFO, rather than LIFO.
a. Prepare a table with the following columns:

(1) Difference between FIFO and LIFO inventory valuation.
(2) Revised IFRS net income using FIFO.
(3) Difference between FIFO and LIFO inventory valuation as a percent of total current assets.
(4) Revised IFRS net income as a percent of the reported net income.
b. Complete the table for the three companies.
c. For which company would a change to IFRS for inventory valuation have the largest percentage impact on total current assets (Col. 3)?
d. For which company would a change to IFRS for inventory valuation have the largest percentage impact on net income (Col. 4)?
e. Why might Kroger have a negative impact on net income from using LIFO, while the other two companies have a positive impact on net income from using LIFO?

Impact on Net Income from Using LIFO Rather than FIFO (from FIFO Inventory (from notes) Total Current Assets Net Income as Reported $30,460 1,116 LIFO Inventory $9,852 4,966 5,917 notes) $58,984 7,621 34,368 ExxonMobil Kroger $317 (57) $31,200 5,793 Ford Motor* 6,782 4,690 (1) (2) (3) (4) (FIFO less LIFO) Total Current Assets IFRS Net Income (Col. 2) Reported Net Income FIFO less LIFO IFRS Net Income