Adjusting Balance Sheet and Income Statement for LIFO to FIFO In its December 2019 10-K, Phillips 66 reported the following information ($ millions). 2019 Assets 2019 Inventories 2019 LIFO Reseve 2018 LIFO Reseve Tax Rate $58,720 $3,776 $4,300 $2,900 22% a. Determine the necessary adjustments to the following balance sheet line items for 2019. Adjustment ($ in millions) Inventories $ OX Total assets $ 0 x Deferred tax liabilities $ 0 x Equity $ 0 x b. Determine the necessary adjustments to the following income statement line items for 2019. Adjustment ($ in millions) Cost of goods sold $ (2,000) * Pretax income $ OX Income tax expense $ 0 x Net income $ 0 x C. Compute the common-size inventories percentage with LIFO and with FIFO for 2019. Hint: Compute inventory as percent of total assets. Note: Round the percentage to one decimal place (for example, enter 14.6% for 14.55555%). 0% X Common size inventories percentage with LIFO for 2019 Common size inventories percentage with FIFO for 2019 0 % x Do we believe the difference is material? Yes