B eBook Problem Walk-Through Lloyd Inc. has sales of $400,000, a net income of $20,000, and the following balance sheet: Cash Receivables Inventories Total current assets Net fixed assets Total assets $ 42,880 Accounts payable 128,000 Notes payable to bank 339,200 Total current liabilities $510,080 Long-term debt 129,920 Common equity $640,000 Total liabilities and equity $ 56,320 35,840 $ 92,160 90,240 457,600 $640,000 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 2), 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.