please with an explanation!

UMHUW/Connect.html Maps Graded Homework Saved Help Save & Exit Submit Check my work 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: $124.800 $11,000 83,000 Sales Revenue Cost of Goods Sold Beginning Inventory Purchases Goods Available for Sale Ending Inventory Cost of Goods Sold Gross Profit Operating Expenses Income from Operations Income Tax Expense (35%) Net Income 94,000 20,700 73,300 50,790 27,000 23,700 8.295 $ 15,405 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 oe @ 59 - CO U 8-52 PM 3/16/20 arch Graded Homework A Help Save & Exit Submin Check my work 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 Item Per Unit $2.20 Replacement Cost per Unit $3.20 Quantity 2,400 700 2,700 2,400 1.20 Total $ 5,280 2,100 3,249 10,080 $20,700 0.60 2.20 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 ^ED o Bia La * 9 arch u neducation.com/flow/connect.html Maps # ded Homework Help Save & Exit Submit Check my work Required 1 Required 2 Restate the income statement to reflect LCM/NRV valuation of the ending investy. 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 Cost of Goods Sold: Beginning Inventory Purchases Goods Available for Sale Ending Inventory Cost of Goods Sold Gross Profit Operating Expenses Income from Operations Income Tax Expense C Net Income ^OED ) 3/16/2020 o B e a u v 3 g Maps Graded Homework A Help Save & Exit Subre Check my work 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 7 o e 3 5 9 earch