eBook Problem Walk-Through Lloyd Inc. has sales of $200,000, a net income of $14,000, and the following balance sheet: Cash Receivables Inventories Total current assets Net fixed assets Total assets $ 34,800 Accounts payable 106,720 Notes payable to bank 290,000 Total current liabilities $431,520 Long-term debt 148,480 Common equity $580,000 Total liabilities and equity $ 67,280 44,660 $111,940 91,640 376,420 $580,000 Check My Work (3 remaining) 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, 2.5x, 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- by percentage points. What will be the firm's new quick ratio? Do not round intermediate calculations. Round your answer to two decimal places. Check My Work (3 remaining)