Urgent Accounting FIFO LIFO Question Please help

2018 XYZ Inc. CONSOLIDATED FINANCIAL STATEMENTS XYZ Inc. Consolidated Financial Position at June 30 (Dollars in millions) 2019 Assets Current assets: Cash and short-term investments $ 1,122 Receivables - trade and other 8,249 Receivables - finance 7,503 Deferred and refundable income taxes 816 Prepaid expenses and other current assets 583 Inventories 7,204 Total current assets 25,477 $ 530 8,607 6.804 733 638 6,351 23,663 Property, plant and equipment - net Long-term receivables - trade and other Long-term receivables - finance Investments in unconsolidated affiliated companies Noncurrent deferred and refundable income taxes Intangible assets Goodwill Other assets Total assets 9,997 685 13,462 598 1,553 475 1,963 1,922 $ 56,132 8,851 860 11,531 562 1,949 387 1,904 1,742 51,449 $ $ $ Liabilities Current liabilities: Short-term borrowings: Machinery and Engines Financial Products Accounts payable Accrued expenses Accrued wages, salaries and employee benefits Customer advances Dividends payable Other current liabilities Long-term debt due within one year: Machinery and Engines Financial Products Total current liabilities 187 5,281 4,723 3,178 1,126 1,442 225 951 165 4,990 4,085 2,923 938 921 194 1,145 180 4,952 22,245 418 4,043 19,822 Long-term debt due after one year: Machinery and Engines Financial Products Liability for postemployment benefits Other liabilities Total liabilities 3,639 14,190 5,059 2,116 47,249 3,694 13,986 5,879 1,209 44,590 2,744 2,465 Stockholders' equity Common stock of $1.00 par: Authorized shares: 900,000,000 Issued shares: (2019 and 2018 - 814,894,624) at paid-in amount Treasury stock (2019 190,908,490 shares; 2018 169,086,448 shares) at cost Retained earnings Accumulated other comprehensive income Total stockholders' equity Total liabilities and stockholders' equity $ (9,451) 17,398 (1,808) 8,883 56,132 (7,352) 14,593 (2,847) 6,859 51,449 $ XYZ Inc. Consolidated Results of Operations for the Years Ended June 30 (Dollars in millions except per share data) 2019 2018 2017 $ $ $ Sales and revenues: Sales of Machinery and Engines Revenues of Financial Products Total sales and revenues 41,962 2,996 44,958 38.869 2.648 41,517 34,006 2,333 36,339 Operating costs: Cost of goods sold Selling, general and administrative expenses Research and development expenses Interest expense of Financial Products Other operating expenses Total operating costs 32,626 3,821 1,404 1,132 1,054 40,037 29.549 3,706 1,347 1,023 971 36,596 26,558 3,190 1.084 768 955 32,555 Operating Income 4,921 4,921 3,784 Interest expense excluding Financial Products Other income (expense) 288 320 274 214 260 377 Income from continuing operations before taxes 4,953 4,861 3.901 Provision for income taxes 1,485 1,405 1,120 Income from continuing operations 3,468 3,456 2,781 Equity in profit (loss) of unconsolidated affiliated companies 73 81 73 Net Income $ 3,541 $ 3,537 $ 2.854 Net Income per common share $ 5.55 $ 5.37 $ 4.21 Net Income common share-diluted $ 5.37 $ 5.17 $ 4.04 Weighted average common shares outstanding (millions) Basic Diluted 638.2 659.5 658.7 683.8 678.4 705.8 Inventories Inventories are stated at the lower of cost or market. Cost is principally determined using the last- in, first-out (LIFO) method. If the FIFO (first-in, first-out) method had been in use, inventories would have been $2,100 million and $2,400 million higher than reported at June 30, 2019, and June 30, 2018, respectively. ... Question 3. Refer to excerpts from XYZ' financial statements above. Assume prices (i.e., inventory costs) are increasing and the tax rate is 35%. a) What is XYZ's cumulative tax savings as of June 30, 2019 from using LIFO instead of FIFO? (Note: Tax savings should be a positive number.) (2 points) $ 0 million b) What would XYZ's cost of goods sold be for 2019 if the company had used FIFO instead of LIFO? (2 points) $ 0 million c) Would XYZ's 2019 net income be higher or lower if the company had used FIFO instead of LIFO? By how much? (3 points) by $ 0 million d) What would XYZ's retained earnings be as of June 30, 2019 if the company had used FIFO instead of LIFO? (2 points) $ 0 million