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 $ 122,000 Cost of Goods Sold Beginning Inventory $ 10,500 Purchases 82,000 Goods Available for Sale 92,500 Ending Inventory 20,500 Cost of Goods Sold 72,000 Gross Profit 50,000 Operating Expenses 26,500 Income from Operations 23,500 Income Tax Expense (301) 7,050 Net Income $ 16,450 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: Item KU Quantity 2,450 700 2,600 2.450 Purchase Cost Replacement Cost per Per Unit Total Unit $ 2.10 $ 5,145 $ 3.10 3.50 2,450 1.10 1.10 2,860 .55 4.10 10,045 2.10 $ 20,500 B 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 = 122,000 SPRINGER ANDERSON GYMNASTICS Income Statement (LCM/NRV basis) For the Year Ended December 31 Sales Revenue Cost of Goods Sold: Beginning Inventory $ 10,500 Purchases 82,000 Goods Available for Sale 92,500 Ending Inventory Cost of Goods Sold Gross Profit Operating Expenses Income from Operations Income Tax Expense Net Income Required Required 2 > 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.) Item Changed LIFO Cost Basis LCM/NRV Basis Amount of Increase (Decrease) Ending Inventory Cost of Goods Sold Gross Profit Income from Operations Income Tax Expense Net Income