In the first quarter of 2008 the Company changed the rate of amortization of its

In the first quarter of 2008 the Company changed the rate of amortization of its pay-TV programming costs to more closely reflect audience viewing patterns. The effect of this change was to reduce programming costs by $58 million and $57 million resulting in increased net income of $35 million and $31 million or $0.58 per share and $0.49 per share during 2008 and 2007 respectively.Required:1. Indicate which financial ratios would be affected by this change.2. Explain whether you would expect this change in amortization policy to affect the accounts by a larger or smaller amount in future years and why.