Mondetta Clothing prepared its annual financial statements dated December 31. The company used the FIFO inventory costing method, but it failed to evaluate the net realizable value of its ending inventory. The preliminary income statement follows: $416,000 13 points $44.000 271.000 315.000 59,360 Net Sales Cast of Goods Hold Beginning Inventory Purchases Goode Available for sale Ending Inventory cost or Goods sold Gross Profi Operating peones Incontro Operation Incone Tax pense (309) Net Income ook 255640 160.360 $2,000 0,360 20.30 47,852 Assume that you have been asked to restate the financial statements to incorporate LCM/NRV. You have developed the following data relating to the ending inventory: sition Cout Per Quantity Onit 2,800 $4.30 1,400 s.co 6.800 2.80 7-30 A B D Net alibi Value per Unit 85.80 2.80 5.80 Total $12,040 7.40 19.040 20,440 $59,360 2,800 7 1. Restate the income statement to reflect LCM/NRV valuation of the ending inventory. Apply LCM/NRV on an item-by-ltem 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. 13 points Required 1 Required 2 BOOK Restate the income statement to reflect LCM/NAV valuation of the ending inventory. Apply LCM/NRV on an item-by-item basis. MONDETTA CLOTHING Income Statement (LCMNRV basis) For the Year Ended December 31 Net Sales $ 410,000 Cost of Goods Sold Beginning Inventory $ 44,000 Purchases 271.000 Goods Available for Sale 315.000 Ending Inventory Cost of Goods Sold Gross Profil Operating Expenses Income from Operations Income Tax Expense Net Income 1. Restate the income statement to reflect LCM/NRV valuation of the ending inventory. Apply L 2. Compare the LCM/NRV effect on each amount that was changed in the preliminary incomes 7 Complete this question by entering your answers in the tabs below. 13 points Required 1 Required 2 eBook Compare the LCM/NRV effect on each amount that was changed in the preliminary income stateme (Decreases should be indicated by a minus sign.) Print Item Changed FIFO Cost Basis LCM/NRV Basis Amount of Increase ( (Decrease) Ending Inventory Cost of Goods Sold Gross Profit Income from Operations Income Tax Expense Net Income $ 59,360 $ 255,640 $ 160,360 $ 68,360 $ 20,508 $ 47,852