Accounting- inventory

1. What methods does this company use to value its inventory?

2. What would have been the book value of inventory in 2002 and 2003 if this company had used FIFO for all inventories

3. What would COGS be if GM had used FIFO for all inventories in 2003

4. Explain, in case of this company, why there is a different between COGS-lifo and cogs-fifo

5. Supposed the tax rate is 35% what are the tax savings from using lifo instead fifo in 2003

6. Suppose the tax rate is 35% what would have been the net income in 2003 if this company had used fifo for all inventories

7. Calculate the inventory turnover using both lifo and fifo methods for this company in 2003

Below is GM's income statement for years 2001 to 2003: ITEM 8 GENERAL MOTORS CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME Years Ended December 31, 2003 2002 2001 (dollars in millions except per share amounts) GENERAL MOTORS CORPORATION AND SUBSIDIARIES Total net sales and revenues (Notes 1 and 24) $185,524 $177,324 $169,051 152,071 146,793 138,847 Cost of sales and other expenses (Note 5) Selling, general and administrative expenses 21,008 20, 690 19, 433 Interest expense (Note 16) 9,464 7,503 8,317 182,543 174,986 166,597 Total costs and expenses Income from continuing operations before income taxes equity income 2,981 2,338 2,454 and minority interests 1,094 644 731 Income tax expense (Note 11) (138) 281 Equity income (loss) and minority interests 612 2,862 1,975 Income from continuing operations (621) (239) (219) Loss from discontinued operations (Note 2) 1,179 Gain on sale of discontinued operations 601 822 1,736 Net income The company also included the following notes to financial statements and Other Operations NOTE 9. Inventories