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In a recent annual report, Evans Electric reported the following in its inventory note: December 31 (dollars in millions) Raw materials and work in progress Finished goods Unbilled shipments Current Year Prior Year 5,6135,495 2,516 283 8,294 2,076 2,823 237 8,673 2,286 Less revaluation to LIFO LIFO value of inventories $6,387 $ 6,218 It also reported a $22 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 EE employed FIFO accounting for all inventory for both years. (Enter your answer in millions.) x net income million increas0 2. Compute the increase or decrease in pretax operating profit that would have been reported had EE employed LIFO but not reduced inventory quantities during the current year.(Enter your answer in millions.) income before taxes million decrease In a recent annual report, Evans Electric reported the following in its inventory note: December 31 (dollars in millions) Raw materials and work in progress Finished goods Unbilled shipments Current Year Prior Year 5,6135,495 2,516 283 8,294 2,076 2,823 237 8,673 2,286 Less revaluation to LIFO LIFO value of inventories $6,387 $ 6,218 It also reported a $22 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 EE employed FIFO accounting for all inventory for both years. (Enter your answer in millions.) x net income million increas0 2. Compute the increase or decrease in pretax operating profit that would have been reported had EE employed LIFO but not reduced inventory quantities during the current year.(Enter your answer in millions.) income before taxes million decrease

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