Reading and Interpreting Walgreens Boots Alliances Inventory Note

Walgreens Boots Alliance, Inc. and Subsidiaries (the company created with the combination of Walgreens and Boots Alliance) Form 10-K includes the following in the note that summarizes its accounting policies:

Inventory

The Companys Retail Pharmacy USA segment inventory is accounted for using the last-in-first-out ("LIFO") method. At August 31, 2015 and August 31, 2014, Retail Pharmacy USA segment inventories would have been greater by $2.5 billion and $2.3 billion, respectively, if they had been valued on a lower of first-in-first-out ("FIFO") cost or market basis.

Required:

1. What inventory costing method does Walgreens Boots Alliance use for its Retail Pharmacy USA segment?

2. What is the amount of the LIFO reserve at the end of each of the two years? Enter your answers in billions.

2015	$fill in the blank 2billion
2014	$fill in the blank 3billion

3. If the LIFO reserve increased during 2015, inventory prices