Exxon Mobil Corporation Analyzing Effects of LIFO for Inventories The current assets of Exxon Mobil Corporation follow: millions Current assets Notes and accounts receivable, less estimated doubtful amounts . ..38,642 2011 2010 $8,453 32,284 9,852 3,124 5,271 $58,984 3,359 6,229 In addition, the following note was provided in its 2011 10-K report: Inventories. Crude oil, products and merchandise inventories are carried at the lower of current market value or cost (generally determined under the last-in, first-out method LIFO). Inventory costs include expenditures and other charges (including depreciation) directly and indirectly incurred n bringing the inventory to its existing condition and location. Selling expenses and general and administrative expenses are reported as period costs and excluded from inventory cost. Inventories ofmaterials and supplies are valued at cost or less In 2011, 2010, and 2009, net income included gains of $292 million, $317 million, and $207 mlon, respectively, attributable to the combined effects of LIFO inventory accumulations and draw-downs. The aggregate replacement cost of inventories was estimated to exceed their LIFO carrying values by $25.6 billion and $21.3 billion at December 31, 2011 and 2010, respectively b. Exxon Mobil reported cost of goods sold of $266,534 milion in 2011. Compute Exxon's inventory turnover ratio for 2011 using total inventories. [Inventory turnover COGS /Avg Total Inventory] c. British Petroleum (BP) reports its financial information using IFRS. For fiscal year 2011, BP reported cost of goods sold of $285,618 million, beginning inventory of $26,218 million and 2011 d. Compare your answers in parts b and c. BP can't use LIFO to report under IFRS conceptually, then, what adjustment would you like to make to Exxon to have the two inventory turnover ratios be more comparable? Revise your calculations in such a way as to find out which company has faster inventory turnover