1. Using CAT’s LIFO numbers as reported and FIFO adjusted numbers and Volvo’s numbers as reported (Example 9), compare the following for 2008: inventory turnover ratio, days of inventory on hand, gross profit margin, net profit margin, return on assets, current ratio, total liabilities-to-equity ratio, and return on equity. For the current ratio, include current provisions as part of current liabilities. For the total liabilities-to-equity ratio, include provisions in total liabilities.

2. How much do inventories represent as a component of total assets for CAT using LIFO numbers as reported and FIFO adjusted numbers, and for Volvo using reported numbers in 2007 and 2008? Discuss any changes that would concern an analyst.

3. Using the reported numbers, compare the 2007 and 2008 growth rates of CAT and Volvo for sales, finished goods inventory, and inventories other than finished goods.