Company Name Kroger (In Millions) From the balance sheets: 29-Jan-22 30-Jan-21 Inventories $ (1,370) $ 80 Less: LIFO reserve $ 626 $ 197 LIFO cost From the income statement Cost of goods sold $ Net income 29-Jan-22 148,258 $ 30-Jan-21 137,888 $ 2,300,000,000 $1,700,000,000 (in billions) Convert to FIFO Cost of goods sold, as reported under LIFO - Increase in LIFO Reserve = Cost of goods sold, using FIFO Lower cost of goods sold, Higher pretax income amount: Minus income taxes (21%) Higher net income under FIFO Net income as reported under LIFO Net income that would have been reported under FIFO 29-Jan-22 $107,539,000,000 626,000,000 $ $106,913,000,000