Analyzing Inventory Disclosure Comparing LIFO and FIFO ming a $25\%$ tax rate, what is the cumulative $($through February $3,$ Year $3)$ tax effect of the use of LIFO to determine inventory costs?

$($Snow an increase as a positive number and a decrease as a negative number. Round your answers to one decimal place.$)$

$$ million

d$.$ Kroger reported net earnings of $$1,907$ million in its fiscal Year $2$ income statement. Assuming a $25\%$ tax rate, what amount of net earnings would Kroger report if the company used

the FIFO inventory costing method?

$($Round your answers to one decimal place.$)$

$

$x$ million

e$.$ Kroger reported merchandise costs $($cost of goods sold$)$ of $$95,662$ million in fiscal Year $2.$ Compute its inventory turnover for the year.

$($Round your answers to one decimal place.$)$

f$.$ Calculate the inventory turnover ratio if the FIFO costing method had been used.

$($Round your answers to one decimal place.$)$

Module ent asset section of the Year $2$ and Year $1$ fiscal year end balance sheets of The Kroger Co$.$ are presented in the accompanying table:

In addition, Kroger provides the following footnote describing its inventory accounting policy $($assume the following is their complete disclosure$)$:

Inventories are stated at the lower of cost $($principally on a LIFO basis$)$ or market. In total, approximately $93\%$ of inventories in Year $2$ and $89\%$ of inventories in Year $1$ were valued using

the LIFO method. Cost for the balance of the inventories, including substantially all fuel inventories, was determined using the FIFO method. Replacement cost was higher than the

carrying amount by $$1,248$ million at February $3,$ Year $3$ and $$1,291$ million at January $28,$ Year $2.$ We follow the Link$-$Chain, Dollar$-$Value LIFO method for purposes of calculating our

LIFO charge or credit.

Required:

a$.$ At what dollar amount does Kroger report its inventory in its February $3,$ Year $3,$ balance sheet?

$

v million

b$.$ What is the cumulative effect $($through February $3,$ Year $3)$ of the use of LIFO on Kroger's pretax earnings? $($Show an increase as a positive number and a decrease as a negative

number.$)$