Chemical Boost, Inc. is a manufacturer of chemical and derivative products. Presented below is selected information from Chemical Boost's recent annual report. Chemical Boost, Inc. Condensed Balance Sheet ($ millions) 2015 2014 2015 2014 Assets Liabilities & Shareholders' Equity Inventory $ 6,500 $ 6,200 Liabilities $25,270 $24,520 Other current assets 13,560 13,900 Capital stock 7,460 7,180 Noncurrent assets 20,300 18,900 Retained earnings 7,630 7,300 Total $ 40,360 $ 39,000 Total $ 40,360 $ 39,000 Chemical Boost, Inc. Condensed Statement of Earnings ($ millions) 2015 2014 Revenues $ 40,570 $ 41,900 Cost of goods sold 27,650 28,240 Gross proft 12,920 13,660 Other expenses 11,760 12,425 Income taxes 300 620 Net earnings $ 860 $615 The footnotes to the company's financial statements revealed that Chemical Boost, Inc. values most of its inventory using LIFO. The LIFO reserve was approximately $600 million and $300 million, respectively, at year-end 2015 and 2014. Assume an effective tax rate of 26%. 1. If Chemical Boost, Inc. had used FIFO instead of LIFO to value its inventory, what value would have been reported for 2015 for the following accounts? Enter answers in millions. Round to the nearest million, if needed. a. Ending inventory $ 0 million b. Cost of goods sold $ 0 million c. Net income before $ 0 million d. Retained earnings $ 0 million 2. How much additional income tax would the company have paid if it had used FIFO instead of LIFO to value its inventory? Round to the nearest millions. $ 0 million Chemical Boost, Inc. is a manufacturer of chemical and derivative products. Presented below is selected information from Chemical Boost's recent annual report. Chemical Boost, Inc. Condensed Balance Sheet ($ millions) 2015 2014 2015 2014 Assets Liabilities & Shareholders' Equity Inventory $ 6,500 $ 6,200 Liabilities $25,270 $24,520 Other current assets 13,560 13,900 Capital stock 7,460 7,180 Noncurrent assets 20,300 18,900 Retained earnings 7,630 7,300 Total $ 40,360 $ 39,000 Total $ 40,360 $ 39,000 Chemical Boost, Inc. Condensed Statement of Earnings ($ millions) 2015 2014 Revenues $ 40,570 $ 41,900 Cost of goods sold 27,650 28,240 Gross proft 12,920 13,660 Other expenses 11,760 12,425 Income taxes 300 620 Net earnings $ 860 $615 The footnotes to the company's financial statements revealed that Chemical Boost, Inc. values most of its inventory using LIFO. The LIFO reserve was approximately $600 million and $300 million, respectively, at year-end 2015 and 2014. Assume an effective tax rate of 26%. 1. If Chemical Boost, Inc. had used FIFO instead of LIFO to value its inventory, what value would have been reported for 2015 for the following accounts? Enter answers in millions. Round to the nearest million, if needed. a. Ending inventory $ 0 million b. Cost of goods sold $ 0 million c. Net income before $ 0 million d. Retained earnings $ 0 million 2. How much additional income tax would the company have paid if it had used FIFO instead of LIFO to value its inventory? Round to the nearest millions. $ 0 million
