The condensed statement of financial position of infotech, Inc. as at December 31, 2020 is shown below: Infotech, Inc. Statement of Financial Position As a December 31, 2030 Assets Liabilities and Shareholders' Equity Cash $ 40.000 Current liabilities $ 30,000 Accounts receivable, net 80,000 Long term debit 120,000 Inventory 130,000 Common shares 200.000 Plant and equipment, bet 250.000 Retained caming Total habilities and Total assets 5500.000 shareholders' equity $300.000 100,000 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 Required (Round the results of your calculations to two decimal places): 1. Compute Infotech's current ratio at December 31, 2020 and indicate how it would change if the company paid $20,000 of its current llabilities as its first transaction of the year 2021? (2.5 marks) 2. Identity 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) 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)