16. Inventory turnover ratio] General Electric [GE] reported that its inventory turnover ratio increased from 8.3 times in 1999 to 8.5 times in 2000. The following data appear in GE's annual report: Years Ended December 31 (in $millions) 1998 1999 2000 Sales of goods Sales of services $43,749 $47,785, $54,828 14.938 16,283 18,126 Total revenues Cost of goods sold $58,687 $64,068 $72,954 31,772 34,554 39,312 Cost of services sold 10.508 11,404 12,511 Cost of goods and services $42,280 $45,958 $51,823 sold Year-end inventories at FIFO 6,316 6,725 7,991 Year-end inventories at LIFO 5.305 5,798 7,146 Note All data exclude GE financial services. Source: General Electric, 1998-2000 annual reports.

a. Compute GE's inventory turnover ratios for 1999 and 2000, using: (i) Cost of goods (and services sold) and LIFO inventory (ii) Cost of goods (and services sold) and FIFO inventory

b. Some firms calculate inventory turnover using sales rather than COGS in the numerator. Calculate GE's 1999 and 2000 turnover, using: (i) Sales and LIFO inventory (li) Sales and FIFO inventory

c. Describe the method that GE appears to use.