Springer Anderson Gymnastics prepared its annual financial statements dated December 31. The company reported its inventory using the UFO inventory costing method but did not compare the cost of its ending inventory to its market value (replacement cost). The preliminary income statement follows: $134,000 $ 13, see 88, eee 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 (sex) Net Income 101, see 23,800 77,700 56,300 29.500 26,800 BB40 $ 18,762 Assume that you have been asked to restate the financial statements to incorporate the LCMINRV rule. You have developed the following data relating to the ending inventory: Purchase cost Item A Quantity 2.150 788 3.200 2.158 Per Unit $2.78 3.5e 1.ve Total $ 5,95 2,450 5, de 10,10 $23, Replacement Cost per unit $3.70 1.70 8.85 2.1 Required: 1. Restate the income statement to reflect LCMNRY Valuation of the ending Inventory Apply CMNRV on an item-by-item basis. 2. Compare the LCM NRV effect on each amount that was changed in the preliminary income statement is requirement Chenlate this action hantari SAP Reere the the halni 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 requirement1 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 LGM/NRV on an item-by-item basis. SPRINGER ANDERSON GYMNASTICS Income Statement (LCMNRV basis) For the Year Ended December 31 Sales Revenue Cost of Goods Sold Beginning inventory Purchases Goods Avalable for Sale Ending Inventory Cost of Goods Sold Gross Pro Operating Expenses thome from Datens htith t Experi incone Feeds >23, 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 Compare the LCM/NRV effect on each amount that was changed in the preliminary income statement in requirement 1. (Decreases should be indicated by a minus sign.) Hem Changed LIFO Cost LCM/NRV BASES Basis Amount of Increase (Decrease Ending Inventory Cost of Goods Sold Grass Profit Income from Operations Income Tac Expense Net Income
