Table: Ouyang Inc. Financial Information (in millions)

Financial Information	2013	2012
Inventories	483	329
LIFO reserve	172	148
Total assets	1,928	1,783
Retained earnings (RE)	372	298
Sales	6,372	5,729
Cost of goods sold (COGS)	3,829	3,518
Net income (NI)	74	62

Also assume that the effective income tax rate for Ouyang Inc. is 30%.

If Ouyang Inc. had used FIFO instead of LIFO, net income for 2013 would have been higher by an amount closest to:

28.9 million

26.3 million

24.7 million

16.8 million

13.4 million