met 7 Homework Honors Check my werk 3 Mondetta Clothing prepared its annual financial statements dated December 31. The company used the FIFO inventory costing method, but it failed to evaluate the not realizable value of its ending inventory. The preliminary income statement follows: 5420,000 $ 45,000 223,00 318,000 66,000 Net Sales Cost of Goods Sold Beginning Inventory Purchases Goods Available for sale Ending Leventory Cost of Goods sold Gross Profit Operating Expenses Incotron Operations Incone Tax Expense (3) Net Income 252.000 16,00 93,000 75.000 22.500 $ 52,500 leren incorporate LCM/NRV. You have developed the following data Assume that you have been asked to restate the financial statements relating to the ending inventory Acquisition Cost Iten Quantity Fernst Tatat A 3. We 14.50 $13,50 B 1,500 9.00 9.000 3.60 21.000 7.50 22.5 566.00 Not Realizate Value per unit 3.00 6.00 1.50 16. 7,00 Required 1. Restate the income statement 10 reflect LCMINRV valuation of the ending inventory Apply LCMNRV on an tombytem basis 2. Compare the LCMNRV offect on each amount that was changed in the preliminary income statement in requirement 3 Required: 1. Restate the income statement to reflect LCMNRV valuation of the ending inventory. Apply LCM/NRV on an item-bytom basis. 2. Compare the LCM/NRV effect on each amount that was changed in the preliminary income statement in requirement 5 Complete this question by entering your answers in the tabs below. Required 1 required Compare the LCV effect on each amount that was changed in the preliminary income statement in requirement 1. (Decreases should be indicated by a minus sign Print them Changed FIFO Coat LGMINRV thesis Amount of Increase Decrease) Ending ventory Cost of Goods Sold Gram vreme to Operations notas Expense Not income 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. A tes MONDETTA CLOTHING Income Statement (LCM/NRV basis) For the Year Ended December 31 Net Sales $ 43,050 Cost of Goods Sold: Beginning Inventory $ 45,000 Purchases 273,000 Goods Available for Sale 52,500 Ending Inventory 52,500 Cost of Goods Sold 265,500 Gross Profit 154,500 Operating Expenses Income from Operations 61,500 Income Tax Expense 18,450 Net Income $ 43,050