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: $138,000 Sales Revenue Cost of Goods Sold s 14,500 90,000 Beginning Inventory Purchases Goods Available for Sale104,500 24,900 Ending Inventory 79,600 58.400 Cost of Goods Sold Gross Profit Operating Expenses Income from Operations Income Tax Expense (30%) Net Income 27,900 8.370 $ 19,530 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 urchase Cost Replacement tity Totalcost per Unit 2, 050 700 5,945 3.502,450 6.460 53.90 1.90 0.95 2.90 2-90 1.90 4.90 2,050 $24,900 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. Prex 2of4 111 Next >