7 Mondetta Clothing prepared its annual financial statements dated December 31. The company used the FIFO inventory costing method, but it failed to evaluate the net realizable value of its ending inventory. The preliminary income statement follows: 5433, DDD 13 points $ 49,500 282.00 331,500 Skipped 99,840 Net Sale Cast of Goods sold Beginning Inventory Purchase Goods available for Sale Teding Inventory Cast of Goods Sold Groe Profit Operating Expez Income from Operations Income Tax Expense 402) Net Incom 231, BD 206,340 97,500 100, 640 43,536 5 65,304 Print Assume that you have been asked to restate the financial statements to incorporate LCM NAV. You have developed the following data relating to the ending inventory. Requisition Coat Slut Realizable Vale per Item A 56. 3.50 Quantity Der Unit Total 3,900 55.40 521, 1,950 15,210 7,900 30,010 3.100 32,76 599,640 5.4 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 LCMNRV effect on each amount that was changed in the preliminary income statement in requirement1 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Restate the income statement to reflect LCM/NRV valuation of the ending inventory. Apply LCM/NRV on an item- MONDETTA CLOTHING Income Statement (LCMINRV basis) For the Year Ended December 31 Net Sales Cost of Goods Solat Beginning Inventory Purchases Goods Available for Sale Ending Inventory Cost of Goods Sold Gross Pro Operating Expenses Income from Operations Income Tax Expense Net Income Required 1 Required 2 > 7 Mondetta Clothing prepared its annual financial statements dated December 31. The company used the FIFO inventory costing method, but it failed to evaluate the net realizable value of its ending inventory. The preliminary income statement follows: $430,000 13 points 202.00 331,500 99,140 Skipper Mat Sales Cost of Goods Sold Beginning Inventory Purchases Goods Available for Sale Tading Inventory Cast of Goods Sold Gos Profit Operating Expect Income from Operations Income Tax Expesse 402) Mat Imetal 231, BED 206,340 97,500 103,840 43,536 5 65,304 Print Assume that you have been asked to restate the financial statements to incorporate LCM NAV. You have developed the following data relating to the ending inventory: Requisition Coat Item Quantity Der Unit 3,90 55.40 1,950 7.00 7,90 3,900 Realisable Vale per Dest 56. 3.90 Total 521,DED 15,210 30,810 32,76 599,640 5.40 Required: 1. Restate the income statement to reflect LCWNRV valuation of the ending inventory. Apply LCM/NRV on an item-by Item basis 2. Compare the LCM/NRV effect on each amount that was changed in the preliminary income statement in requirement1 Complete this question by entering your answers in the tabs below. Required Required 2 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.) Item Changed FIFO Cost LCMINRV Amount of Basis Basis Increase Decrease Ending Inventory Cost of Goods Sold Gross Pro Income from Operations Income Tax Expense Netcome