There are two companies; Total and Chevron. Total uses FIFO while Chevron uses LIFO.

1. Adjust Chevron inventory valuation to FIFO and compute again the ratios.

-The income statement is attached in the picture below. How do I convert LIFO inventory valuation to FIFO?

TOTAL FIFO CHEVRON LIFO BALANCE SHEET ($ millior 2014 2015 BALANCE SHEET ($ millior 2014 2015 Inventory 15,196 13, 116 Inventory 6,505 6,334 Total current assets 77,977 70,236 Total current assets 42,232 35,347 Long term assets 151,821 154,248 Long term assets 223,794 230,756 Total assets 229,798 224,484 Total assets 266,026 266,103 Current liabilities 53,673 50,975 Current liabilities 31,926 26,464 Long term liabilities 82,594 78,100 Long term liabilities 77,909 85,753 Total liabilities 136,267 129,075 Total liabilities 109,835 112,217 Equity 93,531 95,409 Equity 156, 191 153,886 Total liabilities and Equity 229,798 224,484 Total liabilities and Equity 266,026 266,103 INCOME STATEMENT ($ mil 2014 2015 INCOME STATEMENT ($ mil 2014 2015 Revenues 212,018 143,421 Revenues 211,970 138,477 Cost of goods sold 152,975 96,671 Cost of goods sold 119,671 69,751 EBITDA 34,123 46,750 EBITDA 47,995 25,879 Earnings before taxes 12,864 6,439 Earnings before taxes 31,202 4,842 Taxes 8,614 1,653 Taxes 11,892 132 Non-controlling interest 6 301 Non-controlling interest 69 123 Net income 4,244 5,087 Net income 19,241 4,587