Monsanto Company is leading global provider of agricultural products for farmers. The following information was included in disclosure notes in the company's 2011 financial statements:Inventory Valuation (in part)

Agricultural Productivity. The cost of Agricultural Productivity segment inventories in the United States (approximately 14 percent and 10 percent of total inventories in the United States (approximately 10 percent as of August 31, 2011 and 14 percent as of Aug. 31, 2010) is determined by using the last-in, first-out (LIFO) method, which generallly reflects the effects of inflation or deflation on cost of goods sold sooner the other inventory cost methods. The cost of inventories outside of the United States, as well as supplies inventories FIFO is used outside of the United States becuase the requirements in the countries where Monsanto maintains inventories generally do not allow the use of the LIFO mehtod. INventories at FIFO approximate current cost.

If all inventories had been valued on a FIFO basis, inventories would have been $186 million and $111 million higher than reported at August 31, 2011 and 2010, respectively.

The company's effective tax rate is approximately 30%

Required:

1. By how much would year 2011 ending inventory have been different if the company used FIFO inventory method for its entire inventory? Your answer must state if it would have been higher or lower and by how much.

2. By how much would year 2001 net income have been different if the company used the FIFO inventory method for its entire inventory? Your answer must state if it would have been higher or lower and by how much. (Net income is the bottom line of the income statement.)

3. By how much higher (lower) would retained earnings have been at the end of 2011 if MOnsanto had used the FIFIO inventory mehtod instead of LIFO for its entire inventory? Again, your answer if it would have been higher or lower and by how much.