eBook Problem Walk-Through Lloyd Inc. has sales of $100,000, a net income of $7,000, and the following balance sheet: Cash $ 17,400 Accounts payable $ 31,030 Receivables 49,010 Notes payable to bank 15,950 Inventories 130,500 Total current liabilities $ 46,980 Total current assets $196,910 Long-term debt 48,140 Net fixed assets 93,090 Common equity 194,880 Total assets $ 290,000 Total liabilities and equity $ 290,000 The new owner thinks that inventories are excessive and can be lowered to the point where the current ratio is equal to the industr- average, 2.5x, without affecting sales or net income. If inventories are sold and not replaced (thus reducing the current ratio to 2.5x), 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 v by percentage points. What will be the firm's new quick ratio? Do not round intermediate calculations. Round your answer to two decimal places. x