The following inventory note appears in General Electrics 2011 annual report. General Electric Company Edited Inventory Note 2011 2010 (millions of dollars) Raw materials and work in process $ 4,894 $ 4,708 Finished goods 4,379 3,951 Unbilled shipments 372 312 9,645 8,972 Less revaluation to LIFO (606) (676) $ 9,039 $ 8,295 LIFO revaluations decreased $70 million in 2011, compared with decreases of $169 million in 2010 and $82 million in 2009. Included in these changes were decreases of $21 million, $8 million and $6 million in 2011, 2010 and 2009, respectively that resulted from lower LIFO inventory levels. There were net cost decreases in each of the last three years. GEs earnings before income taxes were $18.891 billion in 2011. Assume a 35% marginal tax rate. Requirements: 1. What are the total cumulative tax savings as of December 31, 2011 that GE has realized as a result of using the LIFO inventory method? 2. What would GEs pre-tax earnings have been in 2011 if it had been using FIFO? 3. What December 31, 2011 balance sheet figures would be different and by how much if GE had used FIFO to account for its inventories? 4. What were the LIFO liquidation profits reported in 2011 both pre-tax and after-tax? 5. Explain what factors cause the difference between the LIFO pre-tax income number and the FIFO pre-tax income number you estimated in requirement 2. (Hint: Reconcile the change in the LIFO reserve for 2011.)