Help Save & Exit 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 2:1. 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) Smoky Pig BBQ sells award winning BBQ sandwiches. It purchased a new piece of dishwashing equipment at the end of the current period with cash. Depreciation for this piece of equipment will begin next month. The Cash Flows to Sales Ratio will increase, the Return on Assets Ratio will decrease, and the Return on Equity Ratio will decrease No effect on the Cash Flows to Sales Ratio, no effect on the Return on Assets Ratio, and no effect on the Return on Equity Ratio 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