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 $14.500 90.000 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 (30%) Net Income 24.900 79,68 58 400 30.500 27.900 8.370 $19.53 Assume that you have been asked to restate the financial state following data relating to the ending inventory ents to incorporate the LCM/NRV rule. You have developed the Purchase Cost Replacement Item $2.90 Quantity 2,050 700 3,400 2,050 Total $ 5,945 2.450 6,460 10,045 $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 Names Ch 17 In-Class Exercises B Part 1: Each of the following individuals has a different employment situation. Discuss whether each individual would count as unemployed or not and explain why. If you believe the individual would be counted as unemployed, what category would they fall into cyclical, frictional, or structural? The first 2 are done for you as examples 1. Thomas, who is a part-time student and enjoys playing guitar. Answer: Thomas is not in the labor force, so he would not be counted as unemployed 2. Penny, who was a waitress at the Cheesecake Factory but was laid off due to Covid-19 fears keeping customers at home Answer:Penny would be classified as cyclically unemployed since she lost her job because of an economic downturn. 3. Albert, who just retired after working 50 years making prosthetics 4. Eric, who is in prison after he paid someone to take the ACT and SAT for his child. 5. Lillian, who was recently laid off from her job as an accountant economic downturn. 6. Mary, who just graduated from college and is searching for 7. Matt, who has a Master's in civil engineering but gutter cleaning company. 8. Sue, who lost her job two years ago and has not in more than a year 9. Tara, who just had an adorable baby and is on maternity leave. 10. Zack, who lost his job last month after the company replaced him with artificial intelligence Ole F. 9