Question C: Analysis of Financial Statements (14 marks: 25 minutes) The condensed statement of financial position of Infotech, Inc. as at December 31, 2020 is shown below: Infotech, Inc Statement of Financial Position As at December 31, 2020 Assets Liabilities and Shareholders' Equity Cash $ 40,000 Current liabilities $ 80.000 Accounts receivable, net 80,000 Long-term debt 120,000 Inventory 130.000 Common shares 200,000 Plant and equipment, net 250.000 Retained earning 100 000 Total liabilities and Total assets $500.000 shareholders equity $500.000 Net sales for 2020 were $800,000, including cash sales of $200,000, gross profit was $320,000, and net earnings were $40,000. The long- term debt was outstanding all year, and the interest expense for 2020 was $12,000. The company is subject to an income tax rate of 40% On December 31, 2019, Infotech, Inc. had the following account balances: Accounts receivable (net), 576,000; inventory, $110,000, shareholders' equity. $260,000, and total assets, $440,000. 4. Would the gross profit percentage increase, decrease or remain unchanged as a result of writing down the cost of ending inventory to its net realizable value? Explain. Calculations are not required: (1.5 marks) the w