AA 06-3 Global Analysis LO P3 Review Samsungs income statement in Appendix A for the year ending December, 31 2017, and identify its net income for 2017. Required:

1. Review Samsungs balance sheet data in Appendix A as of December 31, 2017, and December 31, 2016. What amounts (in millions) does Samsung report for inventory at each of these balance sheet dates? 2. Assume Samsung uses absorption costing for financial reporting and its fixed overhead costs equal 10% of the total reported inventory cost at each of these two balance sheet dates. Compute Samsungs 2017 net income under variable costing. Hint: Refer to Exhibit 19.11.