Analyzing Effects of LIFO on Inventory Turnover Ratios The current assets of Exxon Mobil Corporation follow: S millions 2014 2013 $13.065 28.642 $8,452 22.284 Current assets Cast and wash quivales Noles and accounts receiveble. less estimated doubtru amounts Inventories: Ciude oil products and merchandise Materials and supplies Other current assets 15.665 13.252 3.359 3.124 5.223 5.271 S76.563 $82.381 tal current assets In addition, the following note was provided in its 2014 10-K report: Inventories. Crude oil, products and merchandise inventories are carried at the lower of current market value or cost (generally determined under the last-in, first-out method-LIFO). Inventary coses include expenditures and other charges (including depreciation) directly and indirectly incurred in bringing the inventory to its existing condition and location. Selling expenses and general and administrative expenses are reported as period costs and excluded from inventory cost. Inventaries of materials and supplies are valued at cost or less. In 2014, 2013, and 2012, net income included gains of $292 million, $317 million, and $207 million, respectively, attributable to the combined effects of LIFO inventory accumulations and drawdowns. The aggregate replacement cost of inventories was estimated to exceed their LIFO carrying values by $28.9 billion and $21.3 billion at December 31, 2014, and 2013, respectively. Required: a. Exxon Mobil reported pretax earnings of $73,257 million in 2014. What amount of pretax earnings would have heen reported by the company if inventory had been reported using the FIFO rosting method? million b. Exxon Mobil reported cost of goods sold of $266,534 million in 2014. Comoute its inventory turnover ratio for 2014 using total inventories (Round your answer to one decimal place.) C. BP. p.l.c. (BP) reports its financial information using IFRS. For fiscal year 2014, BP reporteu costul goous sold u $299,618 million, beginning invenitury of $26,218 million and ending inventury of $25,661 million. Compule BP'S inventory turnover ratio for fiscal year 2014 (Round your answer to one decimal place.) d. Compare your answers in parts band C. BP can't use LIFO tu report under IFRS, so, revise your calculations in such a way as to find out which company has faster inventory turnover. (Hint: Calculate Exxon Mobil's inventory turnover ralio as i Exxon Mobil used the FIFO costing method.) (Round your answer to one decimal place.)