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: $136,000 $ 14,000 89,000 Sales Revenue Cost of Goods sold Beginning Inventory Purchases Goods Available for Sale Ending Inventory Coat of Goods Sold Cross Profit Operating Expenses Incone from operation Income Tax Expense (301) Net Income 203,000 24.150 78,850 57,150 30.000 27,150 8,145 $ 19,005 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: Purchase cont Item B C b Quantity 2,200 750 3.300 2.100 Por unit 02180 3.00 1.30 4.10 95.800 2,250 5.900 10,000 524.150 Replacement Cost per Unit 53.80 1.00 0.90 2.30 Regulred: 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 an item-by-item basis. SPRINGER ANDERSON GYMNASTICS Income Statement (LCM/NRV basis) For the Year Ended December 31 Sales Revenue $ 136,000 Cost of Goods Sold: Beginning Inventory $ 14,000 Purchases 89,000 Goods Available for Sale 103,000 Ending Inventory Cost of Goods Sold Gross Profit Operating Expenses Income from Operations Income Tax Expense Net Incomo Required 1 Required 2 Compare the LCM/NRV effect on each amount that was changed in the preliminary income statement 1. (Decreases should be indicated by a minus sign.) Item Changed LIFO Cost LCM/NRV Basis Basis Amount of Increase (Decrease) Ending Inventory Cost of Goods Sold Gross Profit Income from Operations Income Tax Expense Net Income