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Read the information below and answer the next 6 questions John Martinson, CFA,...

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Finance

Read the information below and answer the next 6 questions
John Martinson, CFA, is an equity analyst with a large pension fund. His supervisor, Linda Packard, asks him to write a report on Karp Inc. Karp prepares its financial statements in accordance with U.S. GAAP. Packard is particularly interested in the effects of the company's use of the LIFO method to account for its inventory. For this purpose, Martinson collects the financial data presented in Exhibits F and G.
EXHIBIT F
Balance Sheet Information (US$ millions)
\table[[As of 31 December,2009,2008],[Cash and cash equivalents,172,157],[Accounts receivable,626,458],[Inventories,620,539],[Other current assets,125,65],[Total current assets,1,543,1,219],[Property and equipment, net,3,0352,972,],[Total assets,4,5784,191,],[Total current liabilities,1,4951,395,],[Long-term debt,644,604],[Total liabilities,2,1391,999,],[Common stock and paid in capital,1,6521,652,],[Retained earnings,787,540],[Total shareholders' equity,2,4392,192,],[Total liabilities and shareholders' equity,4,5784,191,]]
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