Springer Anderson Gymnastics prepared its annual financial staternents 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: $130,000 $14,500 00,000 304,500 Sales tevenue Cost of Goods Sold Beginning Tyventory Purchases Goods Available for Sale Ending Inventory Cost of Goods sold Gross Profit Operating Expenses Income from Operations Income Tax Expense (303) Net Income 24.900 29.600 50,400 30,500 27.900 B. $ 19,530 Assume that you have been asked to restate the financial statements to incorporate the LCM/NRV rute you have developed the following data relating to the ending inventory Purchase Cost Item Quantity 2.050 200 Per Unit $2.90 3.50 1.90 4.50 Total $ 3.945 2,450 1,460 Beplacement Cost per un $3.00 1.0 0.35 2. 2.050 524.900 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 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 (LCM/NRV basis) For the Year Ended December 31 Sales Revenue 5 138.000 Cost of Goods Sold Beginning Inventory $ 14,500 Purchases 90.000 Goods Available for Sale 104,500 Ending Inventory Cost of Goods Sold Gross Profit Operating Expenses Income from Operations Income Tax Expense Net Income 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