The following lists a number of ratios against the average for the ratio over the prior three years. For each, indicate whether the ratio suggests that return on net operating assets will be higher or lower in the followingyear.

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Current Levl Average, Prior Three Years 2.34 percent 3.59 percent 7.34 0.23 1.3 0.9 Ratio 8ad debt expense Sales Waranty expense/Sales Net salesAccounts receivable IrnventorySales Depreciation/Capital expenditure 4.12 percent 2.30 percent 5.88 0.12 1.5 0.25 Deferred revenue/SaleS