Without LIFO
With LIFO
Revenue
$35,000,000
$35,000,000
Cost of Sales
$30,000,000
$30,000,000
LIFO Adjustment
$-
$600,000
  Gross Profit
$5,000,000
$4,400,000
Expenses
$1,500,000
$1,500,000
Other (Income) Expense, Net
$-
$-
  Operating Profit
$3,500,000
$2,900,000
Interest Expense, Net
$-
$-
  Income before income taxes
$3,500,000
$2,900,000
Income Taxes @ 35%
$1,225,000
$1,015,000
Extra Cash
$0
$210,000