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 50,000 Long-term debt 120,000 Inventory 130,000 Common shares 200.000 Plant and equipment, net 250.000 Retained earnings 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), $76,000 inventory, 5110,000, shareholders' equity, $260,000, and total assets, $440,000. mal plannel 2. Identify and calculate three profitability ratios for 2020. Explain what each ratio measures and its significance. (6 marks) 3. Identify and calculate two asset turnover ratios for 2020. Explain what each ratio measures and its significance. (4 marks) the cont ofandinn