A company had total assets of $650,000 and total liabilities of $300,000 at the end of 2014. For the year 2014, the company had the following transactions:

a) Recorded services provided to customers on account for $25,000.

b) Recorded $3,000 of supplies purchased from a supplier on account.

Consider each item independently. What effect will transaction

(b) have on the net profit margin ratio and the debt-to-assets ratio?

a. Net profit margin ratio will be unaffected and the debt-to-assets ratio will increase.

b.Net profit margin ratio will increase and the debt-to-asset ratios will not be affected.

c.Net profit margin ratio will be unaffected and the debt-to assets ratio will decrease.

d.Net profit margin ratio will decrease and the debt-to-assets ratio will increase.