Check my work 5 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 Cost of Goods Sold Gross Profit Operating Expenses Income from Operations $ 124,000 $ 11,000 83,000 94,000 20,700 73,300 50,700 27,000 23,700 8,295 $ 15,405 Income Tax Expense (35%) Net Income 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: Item ABCD Quantity 2,400 Total $ 5,280 Purchase Cost Per Unit $ 2.20 Replacement Cost per Unit $ 3.20 700 2,700 3.00 2,100 1.20 1.20 3,240 .60 2,400 4.20 10,080 2.20 $ 20,700 Required: 1. Restate the income statement to reflect LCM/NRV valuation of the ending inventory.