Attached please find income statement, balance sheet, and lifo footnote from ExxonMobil's 2020 annual report and answering the following questions.

COGS is " crude oil and product purchases"; Inventory is " crude oil, product and merchandise" Assuming 21% of tax rate.

1. Calculate the Inventory turnover ratio assuming that ExxonMobil uses FIFO for all of its inventory.

2. Calculate the firms approximate Inventory inflation rate.

3. How much tax did the firm save ( or How much extra tax did the firm pay, and which one) in 2020 by using LIFO.

4. Repeat #3 cumulatively thru yr-end 2020.

CONSOLIDATED STATEMENT OF INCOME Note Reference Number 2020 2019 2018 (millions of dollars) 7 178,574 1,732 1,196 181,502 255,583 5,441 3,914 264,938 279,332 7,355 3,525 290,212 3,9 Revenues and other income Sales and other operating revenue Income from equity affiliates Other income Total revenues and other income Costs and other deductions Crude oil and product purchases Production and manufacturing expenses Selling, general and administrative expenses Depreciation and depletion (includes impairments) Exploration expenses, including dry holes Non-service pension and postretirement benefit expense Interest expense Other taxes and duties Total costs and other deductions Income (Loss) before income taxes Income tax expense (benefit) Net income (loss) including noncontrolling interests Net income (loss) attributable to noncontrolling interests Net income (loss) attributable to ExxonMobil 17 94,007 30,431 10,168 46,009 1,285 1,205 1,158 26,122 210,385 (28,883) (5,632) (23,251) (811) (22,440) 143,801 36,826 11,398 18,998 1,269 1,235 830 30,525 244,882 20,056 5,282 14,774 434 14,340 156,172 36,682 11,480 18,745 1,466 1,285 766 32,663 259,259 30,953 9,532 21,421 581 20,840 19 19 Earnings (Loss) per common share (dollars) 12 (5.25) 3.36 4.88 Earnings (Loss) per common share - assuming dilution (dollars) 12 (5.25) 3.36 4.88 The information in the Notes to Consolidated Financial Statements is an integral part of these statements. CONSOLIDATED BALANCE SHEET Note Reference Number December 31, December 31, 2020 2019 (millions of dollars) 4,364 20,581 3,089 26,966 6 3 Assets Current assets Cash and cash equivalents Notes and accounts receivable - net Inventories Crude oil, products and merchandise Materials and supplies Other current assets Total current assets Investments, advances and long-term receivables Property, plant and equipment, at cost, less accumulated depreciation and depletion Other assets, including intangibles - net Total assets 14,169 4,681 1,098 44,893 43,515 227,553 16,789 332,750 14,010 4,518 1,469 50,052 43,164 253,018 16,363 362,597 8 6 6 Liabilities Current liabilities Notes and loans payable Accounts payable and accrued liabilities Income taxes payable Total current liabilities Long-term debt Postretirement benefits reserves Deferred income tax liabilities Long-term obligations to equity companies Other long-term obligations Total liabilities 14 20,458 35,221 684 56,363 47,182 22,415 18,165 3,253 21,242 168,620 20,578 41,831 1,580 63,989 26,342 22,304 25,620 3,988 21,416 163,659 17 19 Commitments and contingencies 16 15,688 383,943 (16,705) 15,637 421,341 (19,493) Equity Common stock without par value (9,000 million shares authorized, 8,019 million shares issued) Earnings reinvested Accumulated other comprehensive income Common stock held in treasury (3,786 million shares in 2020 and 3,785 million shares in 2019) ExxonMobil share of equity Noncontrolling interests Total equity Total liabilities and equity (225,776) 157,150 6,980 164,130 332,750 (225,835) 191,650 7,288 198,938 362,597 The information in the Notes to Consolidated Financial Statements is an integral part of these statements. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 3. Miscellaneous Financial Information Research and development expenses totaled $1,016 million in 2020, $1,214 million in 2019, and $1,116 million in 2018. Net income included before-tax aggregate foreign exchange transaction losses of $24 million, 5104 million and $138 million in 2020, 2019 and 2018, respectively. In 2020, 2019, and 2018, net income included gains of $41 million, $523 million, and $107 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 $5.4 billion and $9.7 billion at December 31, 2020, and 2019, respectively. Crude oil, products and merchandise as of year-end 2020 and 2019 consist of the following: IM Crude oil Petroleum products Chemical products Gas/other Total Dec 31, Dec 31, 2024 2019 (millions of dollars) 5,354 5,111 5,138 5,281 3,023 3,240 654 378 14,169 14,010 Mainly as a result of declines in prices for crude oil, natural gas and petroleum products in 2020 and a significant decline in its market capitalization at the end of the first quarter, the Corporation recognized before-tax goodwill impairment charges of $611 million in Upstream, Downstream, and Chemical reporting units. Fair value of the goodwill reporting units primarily reflected market-based estimates of historical EBITDA multiples at the end of the first quarter. Charges related to goodwill impairments are included in "Depreciation and depletion" on the Statement of Income. CONSOLIDATED STATEMENT OF INCOME Note Reference Number 2020 2019 2018 (millions of dollars) 7 178,574 1,732 1,196 181,502 255,583 5,441 3,914 264,938 279,332 7,355 3,525 290,212 3,9 Revenues and other income Sales and other operating revenue Income from equity affiliates Other income Total revenues and other income Costs and other deductions Crude oil and product purchases Production and manufacturing expenses Selling, general and administrative expenses Depreciation and depletion (includes impairments) Exploration expenses, including dry holes Non-service pension and postretirement benefit expense Interest expense Other taxes and duties Total costs and other deductions Income (Loss) before income taxes Income tax expense (benefit) Net income (loss) including noncontrolling interests Net income (loss) attributable to noncontrolling interests Net income (loss) attributable to ExxonMobil 17 94,007 30,431 10,168 46,009 1,285 1,205 1,158 26,122 210,385 (28,883) (5,632) (23,251) (811) (22,440) 143,801 36,826 11,398 18,998 1,269 1,235 830 30,525 244,882 20,056 5,282 14,774 434 14,340 156,172 36,682 11,480 18,745 1,466 1,285 766 32,663 259,259 30,953 9,532 21,421 581 20,840 19 19 Earnings (Loss) per common share (dollars) 12 (5.25) 3.36 4.88 Earnings (Loss) per common share - assuming dilution (dollars) 12 (5.25) 3.36 4.88 The information in the Notes to Consolidated Financial Statements is an integral part of these statements. CONSOLIDATED BALANCE SHEET Note Reference Number December 31, December 31, 2020 2019 (millions of dollars) 4,364 20,581 3,089 26,966 6 3 Assets Current assets Cash and cash equivalents Notes and accounts receivable - net Inventories Crude oil, products and merchandise Materials and supplies Other current assets Total current assets Investments, advances and long-term receivables Property, plant and equipment, at cost, less accumulated depreciation and depletion Other assets, including intangibles - net Total assets 14,169 4,681 1,098 44,893 43,515 227,553 16,789 332,750 14,010 4,518 1,469 50,052 43,164 253,018 16,363 362,597 8 6 6 Liabilities Current liabilities Notes and loans payable Accounts payable and accrued liabilities Income taxes payable Total current liabilities Long-term debt Postretirement benefits reserves Deferred income tax liabilities Long-term obligations to equity companies Other long-term obligations Total liabilities 14 20,458 35,221 684 56,363 47,182 22,415 18,165 3,253 21,242 168,620 20,578 41,831 1,580 63,989 26,342 22,304 25,620 3,988 21,416 163,659 17 19 Commitments and contingencies 16 15,688 383,943 (16,705) 15,637 421,341 (19,493) Equity Common stock without par value (9,000 million shares authorized, 8,019 million shares issued) Earnings reinvested Accumulated other comprehensive income Common stock held in treasury (3,786 million shares in 2020 and 3,785 million shares in 2019) ExxonMobil share of equity Noncontrolling interests Total equity Total liabilities and equity (225,776) 157,150 6,980 164,130 332,750 (225,835) 191,650 7,288 198,938 362,597 The information in the Notes to Consolidated Financial Statements is an integral part of these statements. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 3. Miscellaneous Financial Information Research and development expenses totaled $1,016 million in 2020, $1,214 million in 2019, and $1,116 million in 2018. Net income included before-tax aggregate foreign exchange transaction losses of $24 million, 5104 million and $138 million in 2020, 2019 and 2018, respectively. In 2020, 2019, and 2018, net income included gains of $41 million, $523 million, and $107 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 $5.4 billion and $9.7 billion at December 31, 2020, and 2019, respectively. Crude oil, products and merchandise as of year-end 2020 and 2019 consist of the following: IM Crude oil Petroleum products Chemical products Gas/other Total Dec 31, Dec 31, 2024 2019 (millions of dollars) 5,354 5,111 5,138 5,281 3,023 3,240 654 378 14,169 14,010 Mainly as a result of declines in prices for crude oil, natural gas and petroleum products in 2020 and a significant decline in its market capitalization at the end of the first quarter, the Corporation recognized before-tax goodwill impairment charges of $611 million in Upstream, Downstream, and Chemical reporting units. Fair value of the goodwill reporting units primarily reflected market-based estimates of historical EBITDA multiples at the end of the first quarter. Charges related to goodwill impairments are included in "Depreciation and depletion" on the Statement of Income