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:

$\backslash$table$[[\{$

$\backslash$table$[[$Sales Revenue$],[$Cost of Goods Sold$]]\}],[],[$Beginning Inventory,$$12,500,],[$Purchases$,86,000,],[$Goods Available for Sale,$98,500,],[$Ending Inventory,$22,350,$is$],[$cost of Goods sold,,$76,150],[$Gross Profit,,$53,850],[$Operating Expenses,,$28,500],[$Income from Operations,,$25,350],[$Income Tax Expense $(30\%),,7,605],[$Net Income,,$$17,745$