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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?

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