medan.com arm 2 Help 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 treplacement cost). The preliminary income statement follows 5152,000 $ 18,00 97.000 Sales Revenue Cost of Goods sold Beginning Inventory Purchases Goods Available for Sale Ending Inventory Cost of Goods Sold Gross Profit Operating Expenses Income Tron Operations Income Tax Expense (304) Net Income 115,000 30,420 84,380 67,420 34.000 33,420 10,026 $ 23,394 Assume that you have been asked to restate the financial statements to Incorporate the LCM/INR rule. You have developed the following data relating to the ending inventory Ites A Quantity 1,800 800 4,100 1,800 Purchase Cost Per Unit Total 53.60 $ 6,480 4.80 3.200 2.60 10,660 5.60 10.000 $30,420 Replacement Cost per unit 54.60 2.60 1.30 3.60 C Required: 1. Rostate 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 warto meducation.com Quem m 126 Saved 7 $30,420 Required: 1. Restate the income statement to reflect LCMNRV 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 minussion) Amount of tam Changed LIFO Cost LCMINRV Increase Basi Baals Decrease) Ending Inventory Cost of Goods Sold Gross Protet Income from Operations Income Tax Expense Not income Hered 1