eBook Problem Walk-Through Lloyd Inc. has sales of $700,000, a net income of $70,000, and the following balance sheet: Cash $147,630 Accounts payable $118,370 Receivables 231,420 Notes payable to bank 95,760 Inventories 678,300 Total current liabilities $214,130 Total current assets $1,057,350 Long-term debt 232,750 Net fixed assets 272,650 Common equity 883,120 Total assets $1,330,000 Total liabilities and equity $1,330,000 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. % What will be the firm's new quick ratio? Do not round intermediate calculations. Round your answer to two decimal places.