The following is taken from ABCs 2020 annual report:

Inventories

December 31 (in millions)	2020	2019
Total Inventories at FIFO	$139,700	$126,700
Less revaluation to LIFO	(15,700)	(10,700)
Inventories	$124,000	$116,000
Cost of Goods Sold	$652,000
Net Earnings (after 30% of Income Tax)	$36,000

Based on the above information, answer the following questions.

(1) What inventory method (FIFO or LIFO) did ABC use in financial reporting for 2020?

(2) What amount of inventory is on the 2020 balance sheet?

Inventory ______________

(3) Compute the inventory turnover ratios (Cost of Goods Sold / Average Inventories) for 2020 under LIFO and FIFO flow assumptions.

LIFO FIFO

(4) In 2020, which inventory method (FIFO or LIFO) would result in higher Net Earnings for ABC? What is the difference of Net Earnings between the two methods.

Method with Higher Net Earnings Difference

_____________