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: $142,000 $15.500 92.000 Sales Revenue cost of Goods Sold Beginning Inventory Purchases Goods Available for sale Ending Inventory Coat of Goods Bold Gross Profie Operating Expenses Income from Operations Income Tax Expense (408) Net Income 107,500 23,245 84.255 57.745 31.500 26.245 10.498 $ 15,747 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 Coat Quantity 1,550 700 3,600 1,550 Per Unit $3.10 4.25 2.10 5.10 Total $4,805 2,975 7,560 7.905 $23,245 Replacement Cost per Unit $4.10 2.10 1.05 3.10 Required: 1. Restate the income statement to reflect LCM/NRV valuation of the ending inventory. Apply LCM/NRV on an item-by-item basis. stateme n t 1,550 5.10 1,909 $23, 245 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 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.) 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 ( Required 1