15. Problem 4.15 (Return on Equity and Quick Ratio) eBook Problem Walk-Through Lloyd Inc. has sales of $150,000, a net income of $9,000, and the following balance sheet: Cash $23,520 Accounts payable $37,380 Receivables 51,240 Notes payable to bank 25,620 Inventories 159,600 Total current liabilities $63,000 Total current assets $234,360 Long-term debt 66,360 Net fixed assets 185,640 Common equity 290,640 Total assets $420,000 Total liabilities and equity $420,000 The new owner thinks that inventories are excessive and can be lowered to the point where the current ratio is equal to the industry average, 2x, without affecting sales or net income. If inventories are sold and not replaced (thus reducing the current ratio to 2x); if the funds generated are used to reduce common equity (stock can be repurchased at book value); and if no other changes occur, by how much will the ROE change? Do not round intermediate calculations. Round your answer to two decimal places. What will be the firm's new quick ratio? Do not round intermediate calculations. Round your answer to two decimal places