Determine the effect of the following scenario on each of the following ratios: . Current Ratio . Gross Margin Ratio Cash Flows to Assets Deal ONLY with the facts provided in the scenario, and determine the direct effects of the scenario ONLY in the current period. Assume no effect on the market price of stock. Assume the Current Ratio prior to any scenario was 2.1. Current Ratio = (Current Assets) / (Current Liabilities) Gross Margin Ratio = (Gross Margin) / (Net Sales) Cash Flows to Assets Ratio = (Net Cash Flows from Operating Activities) / (Average Total Assets) Lengel's Dairy used supplies that it purchased in a prior period. The supplies are not considered to be inventory to the company. Saved Multiple Choice Help Save & EX The Current Ratio will increase, no effect on the Gross Margin Ratio, and the Cash Flows on Assets Ratio will decrease The Current Ratio will decrease, no effect on the Gross Margin Ratio, and no effect on the Cash Flows to Assets Ratio The Current Ratio will decrease, no effect on the Gross Margin Ratio, and the Cash Flows to Assets Ratio tvill increase The Current Ratio will decrease, the Gross Margin Ratio will decrease, and the Cash Flows to Assets Ratio will Increase