2 4 points C aw 11 eBook Springer Anderson Gymnastics prepared its annual financial statements dated December 31. The company reported its inventory using the LIFO inventory costing method but did not compare the cost of its ending inventory to its market value (replacement cost). The preliminary income statement follows: Sales Revenue Cost of Goods Sold Beginning Inventory Purchases Goods Available for Sale Ending Inventory Gross Profit Cost of Goods Sold Operating Expenses Income from Operations Income Tax Expense (30%) Net Income Item ABCD Assume that you have been asked to restate the financial statements to incorporate the LCM/NRV rule. You have developed the following data relating to the ending inventory: Quantity 1,600 750 3,700 1,600 Purchase Cost Per Unit $ 3.20 4.00 2.20 5.20 Total $ 5,120 3,000 8,140 8,320 $ 24,580 $ 16,000 93,000 109,000 24,580 Replacement Cost per Unit $ 4.20 2.20 1.10 3.20 $ 144,000 84,420 59,580 32,000 27,580 8,274 $ 19,306 Check my wor

Springer Anderson Gymnastics prepared its annual financial statements dated December 31. The company reported its inventory using the LiFO inventory costing method but did not compare the cost of its ending inventory to its morket value (replacement cost). The pretiminary income statement follows: Assume that you have been asked to restate the financial statements to incorporate the LCMNRV rule. You have developed the following data relating to the ending inventory: Required: 1. Restate the income statement to reflect LCMNRV valuation of the ending inventory. Apply LCMNRV on an item-by-item basis. 2. Compare the LCM/NRV effect on each amount that was changed in the preliminary income statement in requirement 1. Complete this question by entering your answers in the tabs below. Restate the income statement to reflect LCM/NRV valuation of the ending inventory. Apply LCM/NRV on an item-by-item basis. 1. Restate the income statement to reflect LCM/NRV valuation of the ending inventory. Apply LCM/NRV on an item-by-item basis. 2. Compare the LCMNNV effect on each amount that was changed in the preliminary income statement in requirement 1. Complete this cuestion by entering your answers in the tabs below. Compare the LCM/NRV effect on each amount that was changed in the preliminary income statement in requirement 1. (Decreases should be indicated by a minus sign.)