Assume that the following errors were overlooked by both the company's accounting staff and the company's auditors when preparing the financial statements for the last fiscal year: a) Prepaid expenses were not adjusted for $2 million of insurance coverage that expired (used) durin the year. b) Did not accrue $5 million as a provision to settle a tax dispute with Canada Revenue Agency. Required: 1. For error a), indicate whether each of the following ratios will increase, decrease or remain unchanged: Gross profit percentage, Return on assets, Net profit margin. Justify your answer without re-computing the above three ratios. Use the following format: (Hint: You may want to review the section titled "How Transactions Affect Ratios" in Chapter 12.) 2. For error b), indicate whether each of the following ratios will increase, decrease or remain unchanged: Quick ratio, Return on equity, Fixed assets turnover ratio. Justify your answer without re-computing the above three ratios. Use the same format shown above. 3. For error a), re-compute the net profit margin and verify if your answer is consistent with your answer in requirement 1