Indicate the immediate effects (increase, decrease, no effect) of each of the following independent transactions on (1) the rate of return on shareholders' equity, (2) the current ratio, and (3) the liabilities to assets ratio. State any necessary assumptions.

a. A firm purchases, on account, merchandise inventory costing $205,000.

My thoughts: Account payable(CL) increase, inventory(CA) increase. But I don't know how to go from here. Thanks for any help!