• Caterpillar Inc (CAT) has the following excerpts from their financial statements

	December 31, 2021	December 31, 2020
Inventory (in $ Millions)	14,038	11,402
Net Income (in $ Millions)	6,489	2,998

Inventories are principally determined using the last-in, first-out (LIFO) method. The value of inventories on the LIFO basis.

If the FIFO (first-in, first-out) method had been in use, inventories would have been $3,258 million and $2,921 million higher than reported at December 31, 2021 and 2020, respectively.

Assume corporate tax rate of 21%.

If CAT had used FIFO method instead of LIFO method:

1. What inventory (in $ Millions) would CAT report for 2021?
2. What net income (profit) would CAT report in 2021?
3. What is the cumulative amount of income tax savings that CAT generated through end of 2021 by using LIFO instead of FIFO?
4. What amount would be added to CATs retained earnings at December 31, 2021?