Question

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 inventory for both years.

In a recent annual report, General Electric reported the following in its inventory It also reported a $22 million change in cost of goods sold due to “lower inventory levels.” Required: 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 inventory for both years. (Enter your answer in millions.)