eBook Problem Walk-Through Lloyd Inc. has sales of $200,000, a net income of $12,000, and the following balance sheet: Cash Receivables Inventories $ 42,720 Accounts payable 66,720 Notes payable to bank 206,400 Total current liabilities $315,840 Long-term debt 164,160 Common equity $44,160 29,760 $73,920 72,960 333,120 Total current assets Net fixed assets Total assets $480,000 Total liabilities and equity $480,000 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