In a recent annual report. General Electric reported the following in its inventory note:

It also reported a $23 million change in cost of goods sold due to "lower inventory levels.*'
Required: 1. Compute the increase or decrease in the pretax operating profit (loss) that would have been reported for the current year had GE employed FIFO accounting for all inventor) for both years. 2. Compute the increase or decrease in pretax operating profit that would have been reported had GE employed LIFO but not reduced inventory quantities during the current year.

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December 31 (in millions) Current Year Prior Year Raw materials and work in progress Finished goods Unbilled shipments $5.603 2.863 246 8.712 $5.515 2.546 280 8.341 Less revaluation to LIFO LIFO value of inventories (2.226) (2,076) $6.486 $6.265