Assume that Whisper Company failed to write down inventory to lower of cost or net realizable value at the end of 2017, and the related goods were sold in 2018. Ignoring taxes, what effect would this error have on the following items? (circle your answer for each, 8 points in total)

1. Net Income for 2017 INCREASE DECREASE NO EFFECT

2. Net income for 2018 INCREASE DECREASE NO EFFECT

3. Cash Flow from INCREASE DECREASE NO EFFECT Operations for 2017

4. Retained Earnings at INCREASE DECREASE NO EFFECT year-end 2018