7 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 $120,000 13 ponts $11.50 34.000 Sales Revenue Cost of Goods Sold Beginning Inventory Purchases Goods Available for Sale Ending Inventory Cost of Goods Sold Gross Profit Operating Expenses Income from Operations Incont Fax Expense (40) Net Inco Boo 21,400 26100 $1,900 22500 24.400 14,640 Assume that you have been asked to restate the financial statements to incorporate the ICMNRV ile You have developed the following data relating to the ending inventory D Purchase COLL Quantity 2. 50 5,000 Per Unit 52.10 3.00 1. 41 placet Cont permit 11. 1.60 Total $ 5,605 2.50 >.640 10.10 11.40 Required 1. Reute the income statement to reflect LCM NAV valuation of the ending inventory Apply LCM NRV on an item-byteria 2. Compare the LCM NRV efect on the amount that was changed in the preliminary come statement in roulementi Required: 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 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. Required 1 Required 2 Restate the income st Required 2 reflect LCM/NRV valuation of the ending inventory. Apply LCM/NRV on an item-by-item basis. SPRINGER ANDERSON GYMNASTICS Income Statement (ICMNRV basis) For the Year Ended December 31 Sales Revenue $ 126,000 Cost of Goods Sold Beginning Inventory $ 11,500 Purchases 84,000 Goods Available for Sale 95.500 Ending Inventory Cost of Goods Sold Gross Profit Operating Expenses 27.500 Income from Operations Income Tax Expense Net Income Required 2 > Required: 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 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. Required 1 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 LIFO Cost LCM/NRV Amount of Basis Basis Increase (Decrease) Ending Inventory $ 21,400 Cost of Goods Sold $ 74,100 Gross Profit $ 51,900 Income from Operations $ 24,400 Income Tax Expense $ 9,760 Net Income $ 14,640 .640 10.10 11.40 Required 1. Reute the income statement to reflect LCM NAV valuation of the ending inventory Apply LCM NRV on an item-byteria 2. Compare the LCM NRV efect on the amount that was changed in the preliminary come statement in roulementi Required: 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 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. Required 1 Required 2 Restate the income st Required 2 reflect LCM/NRV valuation of the ending inventory. Apply LCM/NRV on an item-by-item basis. SPRINGER ANDERSON GYMNASTICS Income Statement (ICMNRV basis) For the Year Ended December 31 Sales Revenue $ 126,000 Cost of Goods Sold Beginning Inventory $ 11,500 Purchases 84,000 Goods Available for Sale 95.500 Ending Inventory Cost of Goods Sold Gross Profit Operating Expenses 27.500 Income from Operations Income Tax Expense Net Income Required 2 > Required: 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 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. Required 1 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 LIFO Cost LCM/NRV Amount of Basis Basis Increase (Decrease) Ending Inventory $ 21,400 Cost of Goods Sold $ 74,100 Gross Profit $ 51,900 Income from Operations $ 24,400 Income Tax Expense $ 9,760 Net Income $ 14,640