2. From OXFORD INDUSTRIES' annual report: We are a global apparel company med lifestyle s ceraistibuproducts bearing the trademarks of our company-owned lifestyle OXFORD INDUSTRIES, INC. Excerpt from CONSOLIDATED STATEMENTS OF EARNINGS (in thousands) Fiscal Fiscal Fiscal 2013 2011 2012 $758,913 345,944 412,969 358,582 $855,542 385,985 Net sales Cost of goods sold Gross profit SG&A Change in fair value of contingent S 917,097 513,574 447,645 410,737 2,400 6,285 16,436 68,971 275 consideration Royalties and other operating income Operating income 19,016 84,670 16,820 68,807 Note 2. Inventeries For consolidated financial reporting, as of February 1, 2014 and February 2, 2013, $120.5 million, or 84 and $92.5 million, or 84%, ofour inventories were valued at the lower of LIF O cost or market after deducting our illion of our inventories were valued at the lower of FIFO LIFO reserve. The remaining $23.2 million and $17.1 cost or market as of February 1, 2014 and February 2, 2013, respectively The components of inventories are summarized as follows (in thousands): February 1, 2014 187,689 9,606 3,082 (56,665) 143,712 February 2, 2013 154,593 6,028 5,431 (56,447) 109,605 Finished goods Work in process Fabric, trim and supplies LIFO reserve Total inventory There were no LIFO inventory liquidations in Fiscal 2013, Fiscal 2012 or Fiscal 2011. Required a) (3 pts.) If Oxford Industries, Inc. used FIFO for all of its inventories instead of its current policy, what would the company's operating income have been for the year ended 2/1/14 (fiscal 2013)? b) (1 pt.) Based on your analysis, do prices appear to be rising or falling in this industry? e)(1 pt.) How much has the company saved in income taxes over the years by using LIFO (assume a 30% tax rate)