In the Following Information from the 2017 Annual Reports of Focal

In the following information from the 2017 annual reports of Focal Point Industries all figures have been rounded to millions of dollars.
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$$\begin{array} { l r r } \text { Balance Sheet Data } & \text { May 31, 2017 } & \text { May 31, 2016 } \\\text { Raw materials } & \$ 25.8 & \$ 52.1 \\\text { Work in process } & 44.8 & 34.7 \\\text { Finished goods } & \underline { 1,132.7 } & \underline { 1,303.8 } \\\text { Inventories at FIFO } & 1,203.3 & 1,390.6 \\\text { Adjustment to LIFO } & 5.6 & 21.9\end{array}$$ ?
$\text { Cash Flow Data (Operating Activities) }$
$\begin{array}{lrr}\text { Net income } & \$ 451.4 & \$399.9\\\text { Additions to net income: } & & \\\text { Depreciation } & 198.2 & 100.2 \\\text { Amortization } & 30.6 & 49.0\\\text { Changes in assets and liabilities:}\\\text { Inventories}&187.3& (58.0) \\\text { Accounts payable and other}& (170.4) &(70.1)\end{array}$ Required
(1)Explain what the amount "adjustment to LIFO" represents.What effects has this "adjustment" had on Focal Point Industries' net earnings in 2016 and 2017?
(2)What method of determining cash flows from operating activities has Focal Point Industries used in preparing its statement of cash flows? Explain your answer.
(3)From 2016 to 2017,what change in the inventory balance (increase or decrease)occurred in each year as a result of operating activities? What was the effect on the company's cash flow each year as a result of the inventory change?