Ratio Calculation Gross profit margin Gross profit margin Gross profit margin Transaction All suppliers increase their prices, but our sales price remains the same. Selling prices are increased, assuming customers buy the same amount. Interest Revenue is received. Debt to Asset ratio Expenses increase. Debt to Asset ratio Short-term debt is converted into an equivalent amount of long-term debt. Debt to Asset ratio The company pays its long term mortgage off using cash. Required: Please type your responses into the text box below. Make sure you indicate the effect as either Increase or Decrease or No Effect