17.00 points out of 17.00
Analyzing an Inventory Footnote Disclosure
General Electric Company reports the following footnote in its 10-K report.
December 31 (in millions)
Raw materials and work in process
Less revaluation to LIFO
The company reports its inventories using the LIFO inventory costing method.
(a) What is the balance in inventories reported on GE's 2008 balance sheet?
(b) What would GE's 2008 balance sheet have reported for inventories had the company used FIFO
(c) What cumulative effect has GE's choice of LIFO over FIFO had on its pretax income as of year