Question: a . What inventory costing method does Dow Chemical use? As of Q 1 , what is the effect on cumulative pretax income and cash

a. What inventory costing method does Dow Chemical use? As of Q1, what is the effect on cumulative pretax income and cash flow of using this inventory costing method? (Assume a 30% average cumulative tax rate.) What is the effect on Q1 pretax income and cash flow of using this inventory costing method, assuming a 21% tax rate?
Dow uses Answer 1Average CostFIFOLIFO method of costing for its inventories.
Note: Enter increases as positive and decreases as negative.
Note: Round answers to the nearest dollar, if applicable.
(In millions)Effect on cumulative pretax income:Answer 2Effect on cumulative cash flow:Answer 3

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