9. B 10. o 11. ES eBook Problem Walk-Through Lloyd Inc. has sales of $600,000, a net income of $36,000, and the following balance sheet: Cash $ 126,720 Accounts payable $ 137,280 Receivables 220,440 Notes payable to bank 83,160 Inventories 646,800 Total current liabilities $ 220,440 Total current assets $ 993,960 Long-term debt 183,480 Net fixed assets 326,040 Common equity 916,080 Total assets $1,320,000 Total liabilities and equity $1,320,000 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. ROE will -Select- .by percentage points What will be the firm's new quick ratio? Do not round intermediate calculations. Round your answer to two decimal places