B eBook 11 Problem Walk-Through Lloyd Inc. has sales of $400,000, a net income of $36,000, and the following balance sheet: Cash $ 102,000 Accounts payable $ 100,800 Receivables 223,200 Notes payable to bank 78,000 Inventories 504,000 Total current liabilities $ 178,800 Total current assets $ 829,200 Long-term debt 186,000 Net fixed assets 370,800 Common equity 835,200 Total assets $1,200,000 Total liabilities and equity $1,200,000 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, 2.25%, without affecting sales or net income. If inventories are sold and not replaced (thus reducing the current ratio to 2.25x), 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 percentage points. What will be the firm's new quick ratio? Do not round intermediate calculations. Round your answer to two decimal places 1. 2 . 13 by 14 15. 16