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Effect of Select Transactions on Specific Ratios (7 points) Assume that the following errors were overlooked by the company's accounting staff and the company's auditors when preparing the financial statements for the last fiscal year in the annual report: a) Failed to accrue $5 million owed to employees for work done prior to the end of the fiscal year. b) Did not adjust prepaid insurance to reflect that $2 of insurance coverage has been used during the year. Required: 1. For error a), indicate whether each of the following ratios will increase, decrease or remain unchanged: Current ratio, Return on equity, Receivables turnover ratio. Justify your answer without re-computing the ratios that you have already computed in answering the previous requirements related to chapters 1 through 8 . Use the following format: (Hint: You may want to review the section titled "How Transactions Affect Ratios" in Chapter 12.) 2. For error b), indicate whether each of the following ratios will increase, decrease or remain unchanged: Total asset turnover ratio, Return on assets, Inventory turnover ratio. Justify your answer without re-computing the ratios that you have already computed. Use the same format shown above