1. Prepare the income statement to reflect LCM valuation of the current year ending inventory Apply LCM on an item-by-tem basis (Round your answers to nearest d JAFFA COMPANY Income Statement (LCM basis) For the Year Ended December 31, Current Year Required Information Jaffa Company prepared its annual financial stotements dated December 31 of the current year The company applies the FIFO inventory costing method, however the company neglected to apply LCM to the ending inventory The preliminary current year income statement follows Sales revenue Cost of goods sold Beginning inventory Purchases Goods available for sale Beginning inventory Ending inventory Cost of goods sold Sales revenue $293.000 Cost of gooos sold Beginning inventory Purchases Goods avalilable for sale Ending inventory FirO cost Cost of goods sold 34.300 97000 231,300 61661 Operating expenses retax income 69.639 123,361 63.300 0.06 21021 Income tax expense Net income Gross proft Operating expenses Pretax income income tax expense (35 Net income 5 39.040