Donnelly Industries has a return on sales ratio of 5 percent and a return on assets ratio of 20 percent. For each of these transactions or changes, determine the effect of the transaction on the return on sales and return on assets. Consider each event by itself and fill in the blanks with I for increase, D for decrease, and NC for no change.

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A. Pay long-term liability. C. B. Purchase equipment for cash. Increase gross margin percentage. Increase average inventory by purchasing on open account. D. E. Decrease operating expenses as a percentage of sales. F. Issue additional capital stock for cash. G. Purchase buildings with cash down payment and issue a mortgage payable for the balance. Return on Sales Return on Assets