Steelecase - Inventory and Receivables

Refer to the financial statements and related footnote information that follow from Steelecase, Inc.

1. What dollar amount would Steelcase have reported on its 2016 and 2015 balance sheets if Steelecase had used FIFO for its inventory accounting?

2. What would 2016's COGS have been if Steelcase had used FIFO for its inventory accounting?

3. Using your answer from question 2, how much different would 2016's pretax income have been if Steelecase had used FIFO for its inventory accounting?

4. Using your answer from question 3, and assuming a 35% tax rate, how much different would 2016's net income have been if Steelecase had used FIFO for its inventory accounting?(Hint: after-tax is always (1 - tax rate) x (pre-tax amount).

5. Estimate how many days of external financing Steelcase needs in its operating cycle (i.e. the "cash conversion cycle").Note: Use FIFO numbers for inventory and cost of goods sold.Describe, in your own words, what the result of your calculation means.Compare Steelcase to its industry in terms of its cash conversion cycle.For purposes of comparison, the average inventory days outstanding in this industry is about 50, the average receivables collection period is also about 50, and the average days' payables outstanding is about 30.