Problem 5 (5 Points) Instructions: When firms enter into loan agreements with their banks, it is very common for the agreement to have a restriction on the minimum current ratio the firm has to maintain. Therefore, it is important that the firm be aware of the effects of its decisions on the current ratio. Consider the situation of Advanced Autoparts in 2020. The firm had total current assets of $1,000,000 and current liabilities of $800,000. The bank requires a minimum of a 1.20 current ratio. 1. What is the firm's current ratio? Display at two decimal places. (3 points) 2. If the firm were to expand its investment in inventory and finance the expansion by increasing accounts payable, how much could it increase its inventory and related accounts payable without reducing the current ratio below 1.20? Display at zero decimal places. (2 points)