Determine the effect of the following scenario on each of the following ratios: Cash Flows to Sales Ratio Return on Assets Ratio Return on Equity Ratio 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 21 Cash Flows to Sales Ratio - (Net Cash Flows from Operating Activities) / (Net Sales) Return on Assets Ratio - (Net Income) / (Average Total Assets) Return on Equity Ratio - (Net Income) / (Average Stockholders' Equity) Lengel's Dairy purchased Inventory on account. This inventory was not sold in the current period. Multiple Choice The Cash Flows to Sales Ratio will increase, the Return on Assets Ratio will decrease, and the Return on Equity Ratio will decrease The Cash Flows to Sales Ratio will decrease, the Return on Assets Ratio will increase, and the Return on Equity Ratio will increase No effect on the Cash Flows to Sales Ratio, the Return on Assets Ratio will increase, and no effect on the Return on Equity Ratio No effect on the Cash Flows to Sales Ratio, the Return on Assets Ratio will decrease, and no effect on the Return on Equity Ratio