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r 31 (in millions) erials and work in process oods hipments Current Year Prior Year 5603 5515 2863 2546 246 280 8712 8341 (2,226) (2,076)

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r 31 (in millions) erials and work in process oods hipments Current Year Prior Year 5603 5515 2863 2546 246 280 8712 8341 (2,226) (2,076) 6486 6265 Reserves ne of inventories v 2 points 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 both years. Indicate whether it was an increase or decrease. (Indicate "increase" or "decrease") difference in beggining inventory-diference in ending inventory=difference in cost of goods sold 2076-2226=(150) INCREASE 2 points Assuming a marginal tax rate of 35%, compute GE's cumulative tax savings since adopting LIFO 2 points Assuming the same marginal tax rate, compute GE's tax savings this period from using LIFO Below is information extracted from General Electric's 10k I December 31 (in millions) Raw Materials and work in process Finished goods Unbilled shipments Current Year Prior Year 5603 5515 2863 2546 246 280 8712 8341 (2,226) (2,076) 6486 6265 Less LIFO Reserves LIFO value of inventories -10 43 2 points 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 both years. Indicate whether it was an increase or decrease. (Indicate "increase" or "decrease") difference in beggining inventory-diference in ending inventory=difference in cost of goods sold 2076-2226=(150INCREASE Type here to search 0 BRE e tom 3/4 ^ x 10:24 Time Remaining Return Submit - 2 points Assuming a marginal tax rate of 35%, compute GE's cumulative tax savings since adopting LIFO 6 2 points - Assuming the same marginal tax rate, compute GE's tax savings this period from using LIFO 7 Ky boints

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