Selected financial statement information relating to inventories for General Electric (GE) is given below.

1. Compute GE€™s number of days€™ sales in inventory for 2008 using
(a) The FIFO valuation for inventory and
(b) The LIFO valuation for inventory. Are the differences significant enough to concern you?
2. Suppose that GE purchases its inventory with the terms €œnet 30 days.€ That is, GE€™s creditors expect payment in 30 days. Is GE going to have a cash flowproblem?

December 31 (in millions) 2008 2007 Cost of goods sold. Inventory-FIFO valuation... Inventory-LIFO valuation $54,602 $47,309 13,520 12,897 14,380 13,674