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: 122,000 10,500 82,000 92,500 20,500 Sales Revenue Cost of Goods Sold Beginning Inventory Purchases Goods Available for Sale Ending Inventory Cost of Goods Sold Profit Operating Expenses Income from Operations Income Tax Expense ( ) Net Income 72,000 50,000 26,500 23,500 7,050 16,450 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 Cost Replacement per Quantity Per Unit Unit 2,450 2.10 5,145 3.10 7003.502,450 1.10 2, 600 1.102,860 2,450 4.10 10.045 2.10 KRUA 20,500x

PA7-2 (Algo) Evaluating the Income Statement and Income Tax Effects of Lower of Cost or Market/Net Realizable Value [LO 7-4] Springer Anderson Gymnastics prepored its annuyl financial shatements dated December 31. The comparty reported as inventory iting the LIFO inventory costing method but did not cormpare the cost of its ending inventory to its market value (replocement cost The preliminary income statement foliows: Assume thit you hsve tieen asked to restate the finsecial statements to incorporate the LCMINFV rule. You have teweloped the folowerng oma relating to the ending inventory: 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/Nfy on an item-by-item basis. 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.) 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 LCMNRV rule. You have developed the following data relating to the ending imventory: Required: PA7-2 (Algo) Evaluating the Income Statement and Income Tax Effects of Lower of Cost or Market/Net Realizable Value [LO 7-4] Springer Anderson Gymnastics prepored its annuyl financial shatements dated December 31. The comparty reported as inventory iting the LIFO inventory costing method but did not cormpare the cost of its ending inventory to its market value (replocement cost The preliminary income statement foliows: Assume thit you hsve tieen asked to restate the finsecial statements to incorporate the LCMINFV rule. You have teweloped the folowerng oma relating to the ending inventory: 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/Nfy on an item-by-item basis. 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.) 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 LCMNRV rule. You have developed the following data relating to the ending imventory: Required