Balance Sheet	2018	2017
Cash and cash equivalents	172	157
Accounts receivable	626	458
Inventories	620	539
Other current assets	125	65
Total current assets	1,543	1,219
Property and equipment, net	3,035	2,972
Total assets	4,578	4,191
Total current liabilities	1,495	1,395
Long-term debt	644	604
Total liabilities	2,139	1,999
Common stock and paid in capital	1,652	1,652
Retained earnings	787	540
Total shareholders' equity	2,439	2,192
Total liabilities and shareholders' equity	4,578	4,191

Income Statement	2018	2017
Sales	4,346	4,161
Cost of goods sold	2,211	2,147
Depreciation and amortisation expense	139	119
Selling, general, and administrative expense	1,656	1,637
Interest expense	31	18
Income tax expense	62	48
Net income	247	192

Notes:

1), The LIFO reserves as of 31 December 2018 and 2017 are $155 million and $117 million respectively, and

2), The effective income tax rate applicable to Karp for 2018 and earlier periods is 20 percent.

I.) If Karp had used FIFO instead of LIFO, the amount of inventory reported as of 31 December 2018 would have been closest to:

II.) If Karp had used FIFO instead of LIFO, the amount of cost of goods sold reported for the year ended 31 December 2018 would have been closest to:

III.) If Karp had used FIFO instead of LIFO, its reported net income for the year ended 31 December 2018 would have been higher by an amount closest to: