Question
Required Information [The following information applies to two independent questions.] Here are excerpts from supermarket corporation Tsvetan, Inc.'s 2020 Form 10-K. If needed, assume a
Required Information [The following information applies to two independent questions.] Here are excerpts from supermarket corporation Tsvetan, Inc.'s 2020 Form 10-K. If needed, assume a tax rate of 30%. (in millions) October 31, 2020 October 31, 2019 Inventories $6,650 $6,275 Retained Earnings $15,690 $14,100 Cost of Goods Sold $89,625 $85,700 Net Income $2,135 $2,160 Inventories are stated at the lower of cost (principally on a last-in, first-out "LIFO" basis) or market. In total, approximately 70% of inventories in 2020 and 75% of inventories in 2019 were valued using the LIFO method. Cost for the remaining inventories was determined using the first-in, first-out ("FIFO") method. Replacement cost was higher than the carrying amount by $1,310 at October 31, 2020 and $1,250 at October 31, 2019. What amount of Retained Earnings would Tsvetan, Inc. have reported on October 31, 2020 if the company had always valued all Inventory using the FIFO cost flow assumption? Please provide your answers in millions of dollars, the same format as the dollar amounts above. Round your answer to the nearest whole dollar
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