vork Save 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: Sales Revenue 5 254,000 Cost of Goods Sold Beginning Inventory $ 18,5 Purchases 98 000 Goods Available for Sale 116,500 Ending Inventory 31,930 Cost of Goods Sold 84 570 Gross Profit 69,430 Operating Expenses 34 500 Income from Operations 34,930 Income Tax Expense (40%) 13,972 Net Income $ 20,958 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 Item B C Quantity 1,850 800 4, 20e 1,850 Purchase Cost Replacement Cost per Per Unit Total Unit $ 3.70 $ 6,845 $ 4.20 4,00 3,200 2.70 2.70 11,340 1.35 5.70 10,545 3.78 $ 31,930 y 13.20 $ 31,90 Required: 1. Restate the income statement to reflect LCM/NRV valuation of the ending inventory Apply LCMNRV on an item by.Item basis 2. Compare the LCMINRV 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 Raquared2 Resitate the income statement to reflect LCM/NRV valuation of the ending inventory. Apply LCM/NAV on an item-by-itemba SPHINGE ANDERSON GYMNASTICS Income ottam (CMNAV) Forte.com Sales Revenue Cest of Good Sold Begining Investor Purcha Goods were for Sale Enong Cost of Goods Sold C F Operating Expo BOXER 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.) inom Changed LIFO Cost Hanis LCMINRV Basis Amount of Increase (Decrease) Ending Inventory Cast of Goods Sold Gross Profit Income from Operations Income Tax Expense Net Income