Springer Anderson Gymnastics prepared its annual financial statements dated December 31. The company used the FIFO inventory costing method, but it failed to apply the LC&NRV to the ending inventory. The preliminary income statement is as follows: Sales Revenue Cost of Goods Sold Beginning Inventory Purchases Goods Available for Sale Ending Inventory (FIFO cost) Cost of Goods Sold Gross Profit Operating Expenses Income from Operations Income Tax Expense (30%) Net Income $ 21,500 117,000 138,500 $205,000 35,410 103,090 101,910 44,000 57,910 17,373 $ 40,537 Assume that you have been asked to restate the financial statements to incorporate the LC&NRV. You have developed the following data relating to the ending inventory: Purchase Cost Item Quantity Per Unit Total A 1,630 $2.00 $ 3,260 Current Replacement Cost per Unit (Net Realizable Value) $4.15 B 880 3,620 3.00 5.00 2,640 18,100 1.50 3.00 D 1,630 7.00 11,410 3.50 $35,410 Required: 1-a. Restate the income statement to reflect the LC&NRV rule of the ending inventory. Sales revenue SPRINGER ANDERSON GYMNASTICS Income Statement (LC&NRV basis) For the Year Ended December 31 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 Net income 0 0 $ 0