Robots, Inc. reported the following information regarding 2016-2017 inventory.

Robots, Inc.
	2017	2016
Current assets
Cash	$153,010	$538,489
Accounts receivable, net of allowance for doubtful accounts of $46,000 in 2017 and $160,000 in 2016	1,627,980	2,596,291
Inventories (Note 2)	1,340,494	1,734,873
Other current assets	123,388	90,592
Assets of discontinued operations		32,815
Total current assets	3,244,872	4,993,060
Notes to Consolidated Financial Statements
Note 1 (in part): Nature of Business and Significant Accounting Policies InventoriesInventories are stated at the lower-of-cost-or-market. Cost is determined by the last-in, first-out (LIFO) method. Note 2: Inventories
Inventories consist of the following.
	2017	2016
Raw materials	$1,264,646	$2,321,178
Work in process	240,988	171,222
Finished goods and display units	129,406	711,252
Total inventories	1,635,040	3,203,652
Less: Amount classified as long-term	294,546	1,468,779
Current portion	$1,340,494	$1,734,873
Inventories are stated at the lower of cost determined by the LIFO method or market for Robots, Inc. If the FIFO method had been used for the entire consolidated group, inventories after an adjustment to the lower-of-cost-or-market would have been approximately $2,000,000 and $3,800,000 at October 31, 2017 and 2016, respectively. Inventory has been written down to estimated net realizable value, and results of operations for 2017, 2016, and 2015 include a corresponding charge of approximately $868,000, $960,000, and $273,000, respectively, which represents the excess of LIFO cost over market. Inventory of $294,546 and $1,468,779 at October 31, 2017 and 2016, respectively, shown on the balance sheet as a noncurrent asset represents that portion of the inventory that is not expected to be sold currently. Reduction in inventory quantities during the years ended October 31, 2017, 2016, and 2015 resulted in liquidation of LIFO inventory quantities carried at a lower cost prevailing in prior years as compared with the cost of fiscal 2014 purchases. The effect of these reductions was to decrease the net loss by approximately $24,000, $157,000, and $90,000 at October 31, 2017, 2016, and 2015, respectively.

Instructions

(a)

Comment on why Robots, Inc., might disclose how its LIFO inventories would be valued under FIFO.

(b)

Why does the LIFO liquidation reduce operating costs?

(c)

Comment on whether Robots, Inc. would report more or less income if it had been on a FIFO basis for all its inventory.