Kimberly- Clark Corporation and Procter & Gamble Company reported the information below about inventory in their financial statements and footnotes. Use this information to answer the following questions:
a. What cost- flow assumption(s) does Kimberly- Clark use?
b. What is Kimberly- Clark€™s LIFO reserve at the end of 2011, 2012, and 2013?
c. If Kimberly- Clark used the FIFO cost- flow assumption to account for all of its inventory, what would its balance of ending inventory be in 2011, 2012, and 2013?
d. What would Kimberly- Clark€™s cost of goods under FIFO have been in 2012 and 2013?
e. Would Kimberly- Clark€™s gross profit, taxes, and net income have been higher or lower under FIFO in 2012 and 2013?
f. Compare Kimberly- Clark€™s gross profit percentage, inventory turnover ratio, and days in inventory on hand under LIFO versus FIFO for 2012 and 2013.
g. What cost- flow assumption(s) does Procter & Gamble use?
h. For fiscal 2013, compare Procter & Gamble€™s inventory turnover ratio and days in inventory on hand to those of Kimberly- Clark under FIFO from part f.

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Kimberly-Clark Corporation Excerpt from 2013 Annual Report, Kimberly-Clark Corporation KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENT Years Ended December 31 Millions of dollars) 2013 $21,152 13,912 s 7,240 2012 2011 Net Sales Cost of products sold Gross Proft $21,063 $20,946 14.31414,694 S 6,749 6,152 NOTE 1: Accounting Policies (excerpt) Inventories and Distribution Costs Most U.S. inventories are valued at the lower of cost, using the Last-In, First-Out (LIFO) method, or market. The balance of the U.S. inventories and inventories of consolidated operations outside the U.S. are valued at the lower of cost, using either the First-In, First-Out (FIFO) or moving-averaga cost meth ods, or market. Distribution costs are classified as cost of products sold. Excerpt from 2013 Annual Report, Kimberly-Clark Corporation NOTE 18: Supplemental Data Summary of Inventories (modified) At the lower of cost, determined on the FIFO or moving-average cost methods, or market (Millions of dollars) December 31 2013 S 462 286 1,401 326 2,475 242 $2,233 2012 S 494 329 1.442 314 2,579 231) $2,348 2011 S 497 Raw materials Goods in process Finished goods Other 371 1.468 300 2,636 Inventories at FIFO Adjustment to LIFO Total inventories (280) $2.356 Source: Kimberly-Clark Corporation. http://www.cms.kimberly-clark.com/umbracoimages/ Umbra coFileMedia/2013%20Annua1%20Report%20print-ready%20FINAL 20140220-umbracoFile.pdf. The Procter & Gamble Company Statement of Earnings (excerpt) Amounts in millions, Years ended June 30 Net Sales Cost of Sales 2013 $84,167 42,428 $41,739 2012 $83,680 42.381 $41.299 Gross Profit Balance Sheet (excerpt) Amounts in millions, June 30 Materials and supplies Work in process Finished goods 2013 1,704 722 4,483 S 6,909 2012 $1.740 685 4.296 $ 6.721 Total inventories NOTE 1: Summary of Significant Accounting Policies (excerpt) Inventory Valuation Inventories are valued at the lower of cost or market value. Product-related inventories are primarily maintained on the first-in, first-out method. Minor amounts of product inventories, including certain cos- metics and commodities, are maintained on the last-in, first-out method. The cost of spare part invento- ries is maintained using the average-cost method. Source: P&G 2013 Annual Report. http://www.pginvestor.com/Cache/1001180053.PDRY-&O-PDF&D-&fid-100 11800538T-Siid 4004124.