Realizable Value L06-5 Smart Company prepared its annual financial statements dated December 31 of the current year. The company applies the FIFO inventory costing method; however, the company neglected to apply the LC\&NRV valuation to the ending inventory. The preliminary statement of earnings for the current year follows: Assume that you have been asked to restate the financial statements to incorporate the LCBNRV inventory valuation rule. You have developed the following data relating to the ending inventory at December 31 of the current year: Required: 1. Restate the statement of earnings to reflect the valuation of the ending inventory on December 31 of the current year, at the LC\&NRV. Apply the LC\&NRV rule on an item-by-item basis. 2 Compare and explain the LCBNRV effect on each amourt that was changed in part 1 (Negatlve answers should be indicated by a minus sign.) 3. This part of the question is not part of your Connect assignment 4-. What effect fincrease, decrease, no effect did the LCRNRV rule have on the cash flow for the cuerent year? Increased Decreased No eflect 4- b. What wil be the lang-term eflect on cash fow increase, decrease, no effect?? Decreased increased No etfect