Traditional Method LIFO   IPIC Method LIFO  
Ending Inventory
$5,000,000
Ending Inventory
$5,000,000
Inflation
2%
Inflation
10%
LIFO Reserve
$100,000
LIFO Reserve
$500,000
Federal Tax Rate
35%
Federal Tax Rate
35%
Additional Cash Flow
$35,000
Additional Cash Flow
$175,000