Lloyd Inc. has sales of $350,000, a net income of $24,500, and the following balance sheet: Cash Receivables Inventories $ 51,800 Accounts payable 92,400 Notes payable to bank 350,000 Total current liabilities $ 494,200 Long-term debt 205,800 Common equity $ 700,000 Total liabilities and equity $ 70,000 53,200 $ 123,200 130,900 445,900 $ 700,000 Total current assets Net fixed assets Total assets 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 wi -Select- by percentage points. increase What u decreases new quick ratio? Do not round intermediate calculations. Round your answer to two decimal places