Springer Anderson Gymnastics prepared its annual financial statements dated December 31. The company used the FIFO inventory costing method, but it failed to apply LCM to the ending inventory. The preliminary income statement follows: Sales Revenue Cost of Goods Sold $148,000 Beginning Inventory Purchases 17,000 95,000 Goods Available for Sale Ending Inventory (FIFO cost) 112,000 27,320 Cost of Goods Sold 84,680 Gross Profit Operating Expenses 63,320 33,000 Income from Operations 30,320 9,096 Income Tax Expense (30%) Net Income 21,224 Assume that you have been asked to restate the financial statements to incorporate LCM. You have developed the following data relating to the ending inventory Purchase CostMarket Value per unit Item Quantity-Perunit A 1,700 $3.40 5,780 $4.40 3,000 9,360 9,180 2.40 1.20 3.40 750 4.00 2.40 C 3,900 D 1,700 5.40 9 $27,320 Required 1. Restate the incoine statement to reflect LCM valuation of the ending inventory. Apply LCM on an item- by-item basis MacBook Air