Company A has the following information excerpted from its financial statements: Dec. 31, Year 3 (Omitted) Accounts Receivable Inventory Total Assets Accounts Payable Total Liabilities Total Owners' Equity Dec. 31, Year 1 Dec. 31, Year 2 1,400 1,680 11,200 15,400 57,400 56,000 9,240 10,360 21,000 19,600 36,400 36,400 Year 1 92,300 65,000 27,300 22,400 Year 2 93,600 66,300 27,300 23,380 Year 3 101,400 68,900 32,500 23,240 Revenue COGS Gross Profit Other Expenses (including) - Advertising - Payroll Net Income 10,000 3,000 3,430 11,000 3,200 2,744 Year 2 6,216 (2,327) 0 9,000 3,300 6,482 Year 3 8,200 (2,465) 1,300 Cash flow from operating activities Purchase of PP&E Proceeds from sale of PP&E (other items omitted) Cash flow from investing activities Proceeds from loan Repayment of loan Repurchase of stock Dividends paid (other items omitted) Cash flow from financing activities Change in cash (2,216) 2,600 (3,360) 0 (2,400) 800 3,000 (9,400) (4,000) (2,600) (3,000) 1,000 (4,500) 4,500 Which of the following statements is correct? Gross margin ratio increased from Year 2 to Year 3. O Revenue grew by a larger percentage from Year 1 to Year 2 than from Year 2 to Year 3. Return on sales ratio decreased from Year 2 to Year 3. O The Debt/Assets ratio increased from Year 1 to Year 2