Lollar, Inc., is a giant provider of home furnishings. The company uses the FIFO inventory method. The following information was taken from the companys recent financial statements (dollar amounts are in thousands): Cost of goods sold $1,850,000 Income before taxes 125,000 Income taxes expense (and payments) 52,500 Net income 72,500 Net cash provided by operating activities 123,250 The financial statements also revealed that had Lollar been using LIFO, its cost of goods sold would have been $1,865,000. The companys income taxes and payments amount to approximately 40 percent of income before taxes. a. Explain how LIFO can result in a higher cost of goods sold. Would you expect LIFO to result in a greater or lesser valuation of the companys ending inventories? Defend your answer. b. Assuming that Lollar had been using LIFO, compute the following amounts for the current year. Show your supporting computations, with dollar amounts in thousands. 1. Income before taxes 2. Income taxes expenses 3. Net Income 4. Net cash provided by operating activities