In 20X2, ABBA Fabrics, Inc., elected to change its method of valuing inventory to the weighted average cost (WAC") method, whereas in all prior years inventory was valued using the last-in, first-out (LIFO) method. The company determined that the WAC method of accounting for inventory is preferable as the method better reflects ABBA's inventory at current costs and enhances the comparability of its financial statements by changing to the predominant method utilized in its industry. Condensed financial statements for 20X2 (using WAC) and 20X1 (as originally reported) appear below. Inventory as originally reported at December 31, 20X1($77,907), and December 31, 20X0 ($127.574), increases by $36,382 and $37432, respectively under WAC. Ignore income taxes ABBA Fabrics, Inc., Balance Sheets December 31, 20x2 (Under WAC 20x1 (Under LIFO) (in thousands) Current assets Cash and cash equivalents Receivables, less allowance for doubtful accounts Inventories, net Other current assets Total current assets Long-term assets Total assets Total liabilities Common stock Retained earnings Treasury stock Accumulated other comprehensive income Total liabilities and shareholders' equity $ 2,338 3,388 104,156 1,735 111.600 53,065 164,674 117,325 88,348 124,907 (153,684) (12,222 $164,674 $ 2,280 4,453 77.907 9.366 94,506 56.438 150,944 123,888 75,650 100,953 (153,622) 4,075 $ 150,944 ABBA Fabrics, Inc., Statements of Operations Year's Ended December 31, (in thousands) Sales Cost of goods sold Gross profit Selling, general, and administrative expenses Depreciation and amortization Operating income (loss) 20x2 (Under SAC) $ 276,381 (156,882) 119,579 (112,106) (4,409 $ 3,064 20xi (Under LIFO) $ 276, 247 (152,617) 118,630 (117,815) (3,815 $ (3,000) Required: 1-A Restate the 20x1 balance sheet as it should appear for comparative purposes in the 20x2 annual report. 1-B. Restate the 20X1 statement of operations as it should appear for comparative purposes in the 20x2 annual report Depreciation and amortization Operating income (loss) $ (4,409) 3,064 (3,815) $ (3,000) Required: 1-A. Restate the 20X1 balance sheet as it should appear for comparative purposes in the 20x2 annual report. 1-B. Restate the 20x1 statement of operations as it should appear for comparative purposes in the 20x2 annual report. Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Restate the 20x1 statement of operations as it should appear for comparative purposes in the 20x2 annual report. (Enter answers in thousands of dollars.) LLLLLLLLL ABBA Fabrics, Inc. Statements of Operations Years Ended December 31, (in thousands) (Restated) 20X1 Sales Cost of goods sold Gross profit Selling general, and administrative expenses Depreciation and amortization Operating income (loss) 20X2 $ 276,381 (156,802) 119.579 (112,106) (4.409) 5 3,064