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Support Dashboard Wendy Yates The inventory footnote from The Dow Chemical Company's first quarter 2019 SEC report follows. The company also reports cost of goods sold for Q1 of 2019 of $10,707 million. Inventories, in millions Mar. 31, 2019 Dec. 31, 2018 Finished goods $5,703 $5,640 Work in process 2,239 2,214 Raw materials 940 941 Supplies 891 880 Total $9,773 $9,675 Adjustment of inventories to a LIFO basis (265) (415) Total inventories $9,508 $9,260 Required a. What inventory costing method does Dow Chemical use? LIFO As of Q1 of 2019, what is the effect on cumulative pretax income and cash flow of using this inventory costing method, assuming a 30% average cumulative tax rate. Note: Do not use any negative signs with your answers. Effect on pretax income (in millions): $ 1 X Reduction V Effect on cash flows (in millions): $ 1 X Increase V What is the effect on Q1 of 2019 pretax income and cash flow of using this inventory costing method, assuming a 21% tax rate? Note: Do not use any negative signs with your answers. Effect on pretax income (in millions): $ 1 X Increase Effect on cash flows (in millions): $ 1 X Reduction V 1:56 PM