Final answer:
An increase in distribution centers leads to an increase in assets, which could decrease Return on Assets (ROA) if net income does not increase proportionately.
Step-by-step explanation:
The direct effect of an increase in distribution centers is to increase assets, which decreases Return on Assets (ROA). The ROA is calculated by dividing net income by total assets, so increasing assets without a proportionate increase in net income will result in a lower ROA percentage.
Any investment such as expanding distribution centers will initially raise the assets side of the balance sheet. If this increase in assets does not lead to a sufficient increase in net income, it has the effect of reducing the ROA, as the denominator in the ROA formula has increased.