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Inc. has sales of $ 2 5 0 , 0 0 0 , a net income of $ 1 7 , 5 0 0

Inc. has sales of \$250,000, a net income of $17,500, and the following balance sheet : (30,600)/(64,600)41,650 Accounts payable34,000 Receivables 60,350 Notes payable to bank Inventories 191,250 Total current liabilities $ Total current assets \$293.250 Long-term debt51,850 Net fixed assets 131,750 Common equity Total assets \$425,000 Total liabilities and equity $ 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 ), 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 (308,550)/425000 ROE boxed lnoreaue t odot odot by Box in percentage points What will be the new quick ratio? Do not round intermediate calculations . Round your answer to two decimal places Theta_{x}

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