Caterpillar Inc (CAT) has the following excerpts from their financial statements: CAT Financial Statements Interest Period December 31, 2016 December 31, 2015 December 31, 2014
Inventory (in $ Millions) 9,615 9,700 12,205
Net Income (in $ Millions) (67) 2,512 2,452

Inventories are stated at the lower of cost or market. Cost is principally determined using the last-in, first-out (LIFO) method. The value of inventories on the LIFO basis represented about 60 percent of total inventories at December 31, 2016 and 2015. If the FIFO (first-in, first-out) method had been in use, inventories would have been $1,639 million and $2,498 million higher than reported at December 31, 2016 and 2015, respectively. Assume a corporate tax rate of 35%.

If CAT had used FIFO method instead of LIFO method...

The amount CAT’s 2016 net cash from operations would change by (rounded to the nearest million):

a. $301 Million increase
b. $126 Million increase
c. $76 Million decrease
d. No change in cash from operations