1-From 2005 to 2006, did input prices rise, fall or remain unchanged?

2-From inception till the end of 2006 (i.e., over the life of the company), how much has the company saved or lost in taxes by using LIFO? Assume a tax rate of 40%.

The following information pertains to CVS which uses LIFO to compute the value of inventories. Inventory values computed under the two methods are given below. End of year End Iny - LIFO End Inv - FIFO Income before taxes - LIFO 2004 2,257.0 3,040.7 1,000.7 2005 2,202.9 3,166.6 1,174.0 2006 2,354.4 3,515.2 1,627.5