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 Reserve	2018 LIFO Reserve	Tax Rate
$64,592	$4,154	$4,730	$3,190	22%

a. Determine the necessary adjustments to the following balance sheet line items for 2019. Note: Round your answers to the nearest whole dollar.

	Adjustment ($ in millions)
Inventories	Answer
Total assets	Answer
Deferred tax liabilities	Answer
Equity	Answer

b. Determine the necessary adjustments to the following income statement line items for 2019. Note: Round your answers to the nearest whole dollar.

	Adjustment ($ in millions)
Cost of goods sold	Answer
Pretax income	Answer
Income tax expense	Answer
Net income	Answer

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%).

Common size inventories percentage with LIFO for 2019	Answer
Common size inventories percentagewith FIFO for 2019	Answer

Do we believe the difference is material? AnswerYesNo