eBook Problem Walk-Through Lloyd Inc. has sales of $100,000, a net income of $6,000, and the following balance sheet: Cash $ 29,640 Accounts payable $ 26,260 Receivables 51,480 Notes payable to bank 20,540 Inventories 140,400 Total current liabilities $ 46,800 Total current assets $221,520 Long-term debt 42,640 Net fixed assets 38,480 Common equity 170,560 Total assets $ 260,000 Total liabilities and equity $260,000 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, 1.75x, without affecting sales or net income. If inventories are sold and not replaced (thus reducing the current ratio to 1.75c), 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