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:

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: 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. Restate the income statement to reflect LCM/NRV valuation of the ending inventory. Apply LCM/NRV on an item-by-item basis. \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ SPRINGER ANDERSON GYMNASTICS } \\ \hline \multicolumn{2}{|c|}{ Income Statement (LCMiNRV basis) } \\ \hline Sales Revenue & \\ \hline Cost of Goods Sold: & & \\ \hline Beginning Inventory & & \\ \hline Purchases & & \\ \hline \multicolumn{1}{|c|}{ Goods Available for Sale } & \\ \hline Ending Inventory & & \\ \hline \multicolumn{1}{|c|}{ Cost of Goods Sold } & & \\ \hline Gross Profit & & \\ \hline Operating Expenses & & \\ \hline Income from Operations & & \\ \hline Income Tax Expense & & \\ \hline Net Income & & \\ \hline \end{tabular} 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.)