Please explain in detail for each answer

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: $ 158,880 $ 19,500 188,888 119,500 35,270 Sales Revenue Cost of Goods Sold Beginning Inventory Purchases Goods Available for Sale Ending Inventory Cost of Goods Sold Gross Profit Operating Expenses Income from Operations Income Tax Expense (36) Net Income 84,230 73,770 35,500 38,270 11,481 $ 26,789 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: Quantity 1,950 Item A B D Purchase Cost Replacement Cost per Per Unit Total Unit $ 3.90 $ 7,625 $ 4.90 4.25 3,480 2.90 2.90 12,760 1.45 5.90 11,585 3.90 $ 35,270 Bee 4.400 1,950 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. Answer is not complete. 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. Apply LCM/NRV on an item-by-item basis. SPRINGER ANDERSON GYMNASTICS Income Statement (LCM/NRV basis) For the Year Ended December 31 Sales Revenue $ 158,000 Cost of Goods Sold: Beginning Inventory $ 19,500 Purchases 100,000 Goods Available for Sale 119,500 Ending Inventory 23,955 Cost of Goods Sold 95,545% Gross Profit 62.455 Operating Expenses 35,500 Income from Operations 26,955 Income Tax Expense 8,087 X Net Income $ 87,458