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 prellminary Income statement follows: Sales Revenue Cost of Goods Sold $12e,888 Beginning Inventory $16,800 Purchases Goods Available for Sale Ending Inventory 91,800 18,888 Cost of Goods Sold Gross Profit Operating Expenses Income from Operations Income Tax Expense (38%) Net Income 72,288 47,888 26 , 00 21,888 6,548 $ 15,268 Assume that you have been asked to restate the financlal statements to Incorporate the LCM/NRV rule. You have developed the following data relating to the ending Inventory Purchase Cost Replacement Cost per Unit $3.88 1.88 8.58 2.88 Item Quantity 2,5e0 658 2,588 2,588 Per Unit $2.88 2.88 1.80 4.88 Total $ 5,8e8 1,3e8 2,500 18,8e8 $18,808 Requlrec 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 prellminary Income statement In requirement 1 Complete this question by entering your answers in the tabs below