Kimball International Inc. uses the LIFO method of accounting for inventory.In its 2017 inventory footnote Kimball reported a LIFO reserve of $19,500 and $21,100 at June 30, 2017 and 2016, respectively.

Selected data from the financial statements is below

2017 2016

Total inventory $89,489 $76,146

Net Sales 923,636 895,912

Cost of Sales 664,311 645,591

Gross Profit 259,325 250,321

Earnings per Share $2.15 $1.96

a.Compute the inventory amount at June 30, 2017 for Kimball International Inc. assuming that it had used the FIFO method of accounting for inventory. (3 points)

b.Does Kimball's use of LIFO rather than FIFO affect its cash flows? Explain briefly.