In preparation for significant expansion of its international operations, Sage Co. has adopted a plan to gradually shift to the same accounting methods as used by its international competitors. Part of this plan includes a switch from LIFO inventory accounting to FIFO (recall that IFRS does not allow LIFO). Sage decides to make the switch to FIFO at January 1, 2020. The following data pertains to Sage's 2020 financial statements (in millions of dollars). Sales Inventory purchases 12/31/20 inventory (using FIFO) Compensation expense $660 460 690 28 All sales and purchases were with cash. All of 2020's compensation expense was paid with cash. (Ignore taxes.) Sage's property, plant, and equipment cost $510 million and has an estimated useful life of 10 years with no salvage value. Sage Co. reported the following for fiscal 2019 (in millions of dollars): SAGE CO. BALANCE SHEET AT DECEMBER 31, 2019 2019 2018 Cash $ 464 $ 310 Common stock Inventory 610 590 Retained earnings Property, plant, and equipment 510 510 Accumulated depreciation (102) (51) Total assets $1,482 $1,359 Total equity 2019 $ 610 872 2018 $ 610 749 $1,482 $1,359 SAGE CO. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2019 2019 Sales $ 610 Cost of goods sold (410) Depreciation expense (51) Compensation expense Net income $ 123 (26) Summary of Significant Accounting Policies Inventory: The company accounts for inventory by the LIFO method. The current cost of the company's inventory, which approximates FIFO, was $71 and $61 higher at the end of fiscal 2019 and 2018, respectively, than those reported in the balance sheet. Prepare Sage's December 31, 2020, balance sheet and an income statement for the year ended December 31, 2020. In columns beside 2020's numbers, include 2019's numbers as they would appear in the 2020 financial statements for comparative purposes. (List Assets in order of liquidity.) SAGE CO. Balance Sheet 2020 2019 SAGE CO. Income Statement 2020 2019 Compute Sage's inventory turnover for 2019 and 2020 under both LIFO and FIFO. Assume averages are equal to year-end balances where necessary. (Round answers to 2 decimal places, e.g. 52.75. Do not leave any field blank. Enter o for the amounts if the answer is N/A.) 2020 2019 LIFO FIFO