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 Beginning Inventory Purchases Goods Available for Sale: Ending Inventory Cost of Goods Sold Gross Profit Operating Expenses Income from Operations $ 158,000 $ 19,500 100,000 119,500 35,270 84,230 73,770 35,500 38,270 11,401 $:26,789 Income Tax Expense (30) Net Income 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: Purchase Cost Replacement Cost per Item ARUD Quantity 1,950.1 Per Unit Total Unit $ 3.90 $ 7,605 $4.90 B 800 C 4,400 4.25 2.90 3,400 2.90 12,760 1.45 1,950 5.90 11,505 3.90 $ 35,270 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. 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. Sales Revenue SPRINGER ANDERSON GYMNASTICS Income Statement (LCM/NRV basis) Cost of Goods Sold: For the Year Ended December 311 Beginning Inventory Purchases Goods Available for Sale Ending Inventory Cost of Goods Sold Gross Profit Operating Expenses < Prev 4 of 5 Next >