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 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 $ 13,500 88,000 101, 500 23,800 $ 134,000 77,700 56,300 29,500 26,800 8,040 $ 18,760 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:

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: 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: 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: 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. 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. Complete this question by entering your answers in the tabs below. 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 (LCMINRV basis) For the Year Ended December 31 \begin{tabular}{|l|l|l|} \hline Sales Revenue & & \\ \hline Cost of Goods Sold: & & \\ \hline Beginning Inventory & & \\ \hline Purchases & & \\ \hline Goods Available for Sale & & \\ \hline \multicolumn{1}{|c|}{ Ending Inventory } & & \\ \hline Gross of Goods Sold & & \\ \hline Operating Expenses & & \\ \hline Income from Operations & \\ \hline Income Tax Expense & \\ \hline Net Income & \\ \hline \end{tabular} Compiete this question by entering your answers in the tabs beiow. 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.)