Question
In a recent annual report, General Electric reported the following in its inventory note: December 31 (dollars in millions) Current Year Prior Year Raw materials
In a recent annual report, General Electric reported the following in its inventory note: |
December 31 (dollars in millions) | Current Year | Prior Year | ||
Raw materials and work in progress | $ | 5,613 | $ | 5,455 |
Finished goods | 2,773 | 2,486 | ||
Unbilled shipments | 240 | 284 | ||
8,626 | 8,225 | |||
Less revaluation to LIFO | (2,286) | (2,086) | ||
LIFO value of inventories | $ | 6,340 | $ | 6,139 |
It also reported a $22 million change in cost of goods sold due to lower inventory levels. |
Required: | |
1. | Compute the increase or decrease in the pretax operating profit (loss) that would have been reported for the current year had GE employed FIFO accounting for all inventory for both years. (Enter your answer in millions.) |
How do I do this? |
}uetr":ontidaliValeabtTarst,"uetr":ederswAnis,"""":ontiipcres_dab"t},:{2"_6,"0]:[7"_6,"llnu":51"_},e}lsfa":cylipo,"%C2%A0":"r"deOrrtso,""]seeacrde,"e"asrenc"i:[t"is"l",stliw%20nee%20am"n":meNawnDoopdr,":05"_2{"":"0:{6"_2,"{}":32"_e,lsfa":42"_1,:-0"_5,":04"_2,"-1":31"_0,":_5,":04""_e,lsfa":48"_},:{7"_3,"}]12:47"_7,"61":34"_[{":23"_e,ru:t5"_4,"1"leit%20Tew"N":mena,"}]uetr":47"_2,":54"_],:[3"_3,""}00"1":c3,"4""7":c2,"9""6":c1,"7"12:"0""c:{9"_1,""}23:"0"{"":59"_],}]"}gema_ibgt%20isnLowpDro"d":_7,"n"owpDro"d":27"_0,":25"_},uetr":43"_",ONTILUSO:"6"_7{"":55"_},"}seeacrin:"5"_7{"":_0,""}:"9"_7,"e"asrenc"i":75"_:{6"_5,""}:"9"_7,"""":75"_:{0"_3{"":_2{"":20"_,{}}"}ONTIESQU:"6"_7{"":55"_},"}:"9"_7,"n"iollmi:"5"_7{"":30"_:{2""_:{0"_2{"},"}ermbNulety%20sseonspre:"7""_},t"ghri:"8"_6,"uetr":43"_",ONTILUSO:"6"_7{"":55"_},"}"%24":81"_2,":53"_e,ru:t3"_6{"":55"_",CYENRRCU:"3"_7{"":29"_},"}7243:"5"_7{"":_0,""}:"9"_7,"~"~a:"5"_7{"":56"_},""":79"_",:"5"_7{"":30"_:{2""_:{0"_2{"},"})%3B11%2023,16,%2037(1gb%20rr:locod-unrokgac"b":_8,""}1)21,%2063%2017,13b(rg:"9""_",ONTIESQU:"6"_7{"":55"_},"}:"9"_7,"e"omnc%20iet%20naxetPr:"5"_7{"":30"_:{2""_:{0"_2{"[[":13"_e,lsfa":41"_},n"owpDro"d":27"_1,:-5"_2,"{}":75"_e,lsfa":82"_:{8"_2,"""":22"_e,lsfa":35"_e,ru:t6"_3,"{}":55"_",leab%20TedtltiUn:"9"_6,":47"_1,":18"_5{":[5"_6{"
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started