Reformulating Balance Sheet and Income Statement Items for LIFO to FIFOIn its December 2016 10-K, Phillips 66 reported the following information ($ millions). 2016 Assets 2016 Inventories2016 LIFO Reserve2016 Increase in LIFO ReserveTax Rate$51,653$3,150$3,300$2,00035% a. Determine the necessary adjustments to the following balance sheet line items.i. Inventoriesii. Total assets iii. Tax liabilities iv. Equity b. Determine the necessary adjustments to the following income statement line items.i. Cost of goods soldii. Pretax incomeiii. Income tax expense iv. Net Income c. Compute the common-size inventories with LIFO and with FIFO. (Hint: Compute inventory as per-cent of total assets.) Do we believe the difference is material? Explain.