ork mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 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 156,800 Beginning Inventory Purchases s 19,000 99,000 Goods Available for Sale 118,000 33,580 Ending Inventory Cost of Goods Sold Gross Profit Operating Expenses Income from Operations Income Tax Expense (30%) Net Income 84,420 1,580 35,080 36,580 10,974 s 25,686 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 Quantit 1,988 825 4,300 1,980 Replacement Cost per Unit $4.88 2.80 1.48 3.80 Unit $3.88 4.00 2.80 s.80 Total $ 7,228 3,300 12,046 $33,580 Required: 1 Restate the income statement to reflect LCM/NRV 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